Which of the Following Statements Is False

question 83

Multiple Choice

Which of the following statements is false?

• A) Investments with higher volatility have rewarded investors with higher average returns.
• B) Investments with higher volatility should have a higher risk premium and therefore higher returns.
• C) Volatility seems to be a reasonable measure of risk when evaluating returns on large portfolios and the returns of individual securities.
• D) Riskier investments must offer investors higher average returns to compensate them for the extra risk they are taking on.

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Definitions:

1,3-Butadiene

A simple conjugated diene with the formula C4H6, important as a monomer in producing synthetic rubber.

AntiAromatic

Compounds that possess cyclic, conjugated systems with 4n π electrons, which destabilize the molecule and make it less stable than expected.

NonAromatic

A compound that does not fulfill the criteria for aromaticity, lacking a continuous ring of p-orbitals.

[10]Annulene

A cyclic compound with a ten carbon ring structure, which may or may not exhibit aromatic characteristics depending on its substitution pattern and ring geometry.