Which of the Following Statements Is FALSE

question 96

Multiple Choice

Which of the following statements is FALSE?

• A)In exchange for bearing systematic risk,investors want to be compensated by earning a higher return.
• B)A key step to measuring systematic risk is finding a portfolio that contains only unsystematic risk.
• C)When evaluating the risk of an investment,an investor will care about its systematic risk,which cannot be eliminated through diversification.
• D)To measure the systematic risk of a stock,we must determine how much of the variability of its return is due to systematic,market-wide risks versus diversifiable,firm-specific risks.

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Definitions:

Personality and Divorce

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Extraversion

A personality trait that is characterized by sociability, talkativeness, assertiveness, and high levels of emotional expressiveness.

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Sensation-seeking

The pursuit of experiences and sensations that are varied, novel, complex, and intense, often involving risk-taking behaviors.