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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Definitions:

Political Reforms

Changes aimed at improving the political system, including alterations to policies, institutions, or processes.

Interest Rate

The expense, depicted as a percentage of the principal sum, that a borrower must bear for the borrowing of assets from a lender.

Foreign-Currency Exchange

The conversion of one country's currency into another's, a key process in international trade and investments.

Net Exports

The disparity between what a nation exports and what it imports in total.