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:

Needs

Fundamental physical or psychological requirements for the well-being of humans, including basic needs such as food and shelter, as well as social and emotional needs such as belonging and esteem.

Fromm

Erich Fromm was a psychoanalyst and social psychologist known for his theories on human personality, freedom, and the need for authentic human connection.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology comprising a five-tier model of human needs, from basic physiological needs to self-actualization.

Person-Centered Theory

A therapeutic approach developed by Carl Rogers emphasizing the importance of providing a supportive environment where clients can enhance their self-awareness and self-esteem.