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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Senior Executives

Top-level managers or administrators in an organization, responsible for making major corporate decisions.

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The process of sharing information, ideas, or feelings with others through speech, writing, or other forms of expression.

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The actions taken to convey information, ideas, or feelings to others, using various methods and channels.

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