Which of the Following Statements Is FALSE

question 22

Multiple Choice

Which of the following statements is FALSE?

• A) On average, larger stocks have higher volatility than smaller stocks.
• B) Portfolios of large stocks are typically less volatile than individual large stocks.
• C) On average, smaller stocks have higher returns than larger stocks.
• D) On average, Treasury Bills have lower returns than corporate bonds.

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Definitions:

AASB 136

The Australian Accounting Standards Board standard that details the accounting treatment for impairments of assets.

Impairment

The action of or situation where the value of an asset is corrected downwards in the company's books to reflect a loss in value, ensuring the asset's recorded cost does not exceed its recoverable amount.

Issued Capital

The total value of a company's shares that have been issued to shareholders, representing the equity funding provided by shareholders.