Which of the Following Statements Is False

question 21

Multiple Choice

Which of the following statements is false?

• A) The expected return of a portfolio should correspond to the portfolio's beta.
• B) Graphically the line through the risk-free investment and the market portfolio is called the capital market line (CML).
• C) The beta of a portfolio is the weighted average beta of the securities in the portfolio.
• D) By holding a negative beta security, an investor can reduce the overall market risk of his or her portfolio.

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Definitions:

Anxiety-Related Disorders

Disorders characterized by excessive fear, worry, or anxiety, significantly impacting daily functioning.

Increased Risk

The elevated possibility of encountering a negative event or outcome, often used in the context of health or environmental issues.

Mythical

Pertaining to or characterized by myths, often involving gods, heroes, and extraordinary or supernatural events.

Historical Accounts

Narratives or records of past events and occurrences based on factual information or evidence.