Which of the Following Statements Is False

question 35

Multiple Choice

Which of the following statements is false?

• A) Out-of-the-money calls have the highest expected returns and out-of-the-money puts have the lowest expected returns.
• B) The expression SΔ/(SΔ + B) is the ratio of the amount of money in the stock position in the replicating portfolio to the value of the replicating portfolio (or the option price); it is known as the leverage ratio.
• C) The beta of a portfolio is just the weighted average beta of the constituent securities that make up the portfolio.
• D) The magnitude of the leverage ratio for options is usually very small, especially for out-of-the-money options.

Distinguish between allopatric and sympatric speciation, and the conditions that favor each process.

Comprehend the impact of natural selection, sexual selection, and genetic drift on microevolutionary processes.

Understand the principles and factors affecting natural selection and evolution.

Recognize different types of natural selection (e.g., stabilizing, directional, disruptive).

---

Definitions:

Higher Levels

Positions, statuses, or stages that are considered superior or more advanced in a particular hierarchy or system.

Large Corporation

A significantly sized business entity that operates in multiple locations, often internationally, with a substantial number of employees and high revenue.

Small Business

In Canada, a business that has 5–100 employees, is independently owned and operated, and does not dominate its industry.

Franchise

What results when one business owner sells to another the right to operate the same business in another location.