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:

Effect Dependence

Reliance on others due to their capacity to provide rewards and punishment.

Information Dependence

Reliance on others for information about how to think, feel, and act.

Socialization

The process by which people learn the attitudes, knowledge, and behaviours that are necessary for a person to function in a group or organization.

Compliance

The act of conforming to, following, or acting in accordance with requests, standards, or rules.