Which of the Following Statements Is False

question 81

Multiple Choice

Which of the following statements is false?

• A) The Sharpe ratio of the portfolio tells us how much our expected return will increase for a given increase in volatility.
• B) We should continue to trade securities until the expected return of each security equals its required return.
• C) The required return is the expected return that is necessary to compensate for the risk that an investment will contribute to the portfolio.
• D) If security i's required return exceeds its expected return, then adding more of it will improve the performance of the portfolio.

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Definitions:

Divisional Structure

An organizational framework where operations are divided based on divisional lines, such as geographical areas, products, or markets.

Unique Offerings

Products, services, or experiences provided by a company that are distinct and not available from competitors, often creating a competitive advantage.

Knowledge Flow

The movement of knowledge from where it is generated to where it can be utilized, encompassing the transfer and sharing of knowledge within and between organizations.

Functional Structure

An organizational design that groups employees based on their specialized roles or functions, such as marketing, finance, or operations.