Which of the Following Statements Is FALSE

question 92

Multiple Choice

Which of the following statements is FALSE?

• A) Investments with higher volatility have rewarded investors with higher average returns.
• B) Investments with higher volatility should have a higher risk premium and, therefore, higher returns.
• C) Volatility seems to be a reasonable measure of risk when evaluating returns on large portfolios and the returns of individual securities.
• D) Riskier investments must offer investors higher average returns to compensate them for the extra risk they are taking on.

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Definitions:

Lens

A transparent structure in the eye that focuses light onto the retina to produce clear images.

Elongated Eye

A condition often associated with myopia, where the eyeball is longer than normal, causing light to focus in front of the retina.

Nearsightedness

A common vision condition in which close objects are seen clearly, but objects farther away appear blurred.

Far Objects

Items or entities that are physically distant from the observer or point of reference.