Which of the Following Statements Is False

question 97

Multiple Choice

Which of the following statements is false?

• A) In exchange for bearing systematic risk, investors want to be compensated by earning a higher return.
• B) A key step to measuring systematic risk is finding a portfolio that contains only unsystematic risk.
• C) When evaluating the risk of an investment, an investor will care about its systematic risk, which cannot be eliminated through diversification.
• D) To measure the systematic risk of a stock, we must determine how much of the variability of its return is due to systematic, market-wide risks versus diversifiable, firm-specific risks.

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Definitions:

Manufacturer

is a person or company that makes goods for sale, especially on a large scale, using machinery and labor.

Drunk Driving

The criminal act of operating a vehicle while impaired by alcohol or other drugs, beyond the legal limit.

Negligence

The failure to exercise reasonable care to avoid causing injury or loss to another person, resulting in liability for any damages caused.

Likely Defence

A plausible argument or strategy used in legal proceedings to refute claims or charges against a defendant.