Which of the Following Statements Is False

question 7

Multiple Choice

Which of the following statements is false?

• A) When stocks are perfectly positively correlated, the set of portfolios is identified graphically by a straight line between them.
• B) An investor seeking high returns and low volatility should only invest in an efficient portfolio.
• C) When the correlation between securities is less than 1, the volatility of the portfolio is reduced due to diversification.
• D) Efficient portfolios can be easily ranked, because investors will choose from among them those with the highest expected returns.

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Definitions:

Gigantism

Abnormally tall growth caused when anterior pituitary secretes excessive amounts of human growth hormone during childhood

Pituitary Gland

A small gland located at the base of the brain responsible for releasing hormones that regulate various bodily functions, including growth, metabolism, and reproduction.

Hypothalamus

A region of the brain that regulates bodily functions such as temperature, hunger, and thirst, and is involved in controlling the pituitary gland.

Regulated

Controlled or governed according to rules or principles, often to maintain order or achieve a desired outcome.