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:

Adults

Individuals who are considered to have reached maturity in their society, typically marked by reaching a certain age or developmental milestone.

Plagiarized

The act of copying someone else's work and presenting it as one's own without proper attribution.

College Students

Individuals enrolled in an institution of higher education to pursue a degree or certification.

Percentage

A proportion or share in relation to a whole, represented as a fraction of 100.