Which of the Following Statements Is FALSE

question 72

Multiple Choice

Which of the following statements is FALSE?

• A)Expected return should rise proportionately with volatility.
• B)Investors would not choose to hold a portfolio that is more volatile unless they expected to earn a higher return.
• C)Smaller stocks have lower volatility than larger stocks.
• D)The largest stocks are typically more volatile than a portfolio of large stocks.

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Definitions:

Pavlov's Experiments

A series of studies conducted by Ivan Pavlov that demonstrated classical conditioning, where dogs learned to associate a neutral stimulus (bell) with an unconditioned stimulus (food), leading to a conditioned response (salivating).

Salivary Conditioning

A form of classical conditioning where an automatic and natural response, like salivation, is trained to respond to a previously neutral stimulus.

Unconditioned Response (UR)

An instinctive, automatic response to a stimulus that takes place without any earlier learned behavior or conditioning.

Ring Tone

A noise produced by a phone signaling an incoming call or text message.