Which of the Following Statements Is False

question 89

Multiple Choice

Which of the following statements is false?

• A) Without trading, the portfolio weights will decrease for the stocks in the portfolio whose returns are above the overall portfolio return.
• B) The expected return of a portfolio is simply the weighted average of the expected returns of the investments within the portfolio.
• C) Portfolio weights add up to 1 so that they represent the way we have divided our money between the different individual investments in the portfolio.
• D) A portfolio weight is the fraction of the total investment in the portfolio held in an individual investment in the portfolio.

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Definitions:

Fraternal Twins

Twins that develop from two separate eggs fertilized by two different sperm, resulting in siblings that are genetically distinct.

Cerebral Hemispheres

The two halves of the brain, each responsible for different functions and controls the opposite side of the body.

Function

The specific role or activity that something is designed or used for, or the natural purpose of a biological process or organ.

Hemispheric Specialization

The idea that the two hemispheres of the brain are functionally different and certain mental processes and behaviors are mainly controlled by one hemisphere.