Which of the Following Statements Is False

question 99

Multiple Choice

Which of the following statements is false?

• A) The expected return of a portfolio is equal to the weighted average expected return, but the volatility of a portfolio is less than the weighted average volatility.
• B) Each security contributes to the volatility of the portfolio according to its volatility, scaled by its covariance with the portfolio, which adjusts for the fraction of the total risk that is common to the portfolio.
• C) Nearly half of the volatility of individual stocks can be eliminated in a large portfolio as a result of diversification.
• D) The overall variability of the portfolio depends on the total co-movement of the stocks within it.

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Definitions:

Several Cultures

Refers to the existence or inclusion of multiple cultural perspectives, traditions, or values within a group or society.

Religious Beliefs

The faith-based principles and convictions held by individuals or groups, often pertaining to the existence, nature, and worship of a deity or deities.

Sacred Places

Locations that are considered holy or spiritual by certain religions or cultures, often associated with worship, rituals, or significant historical events.

Business Partners

Individuals or entities that collaborate and share responsibilities, risks, and benefits in a business venture.