Which of the Following Statements Is FALSE

question 134

Multiple Choice

Which of the following statements is FALSE?

• A)The expected return of a portfolio should correspond to the portfolio's beta.
• B)Graphically the line through the risk-free investment and the market portfolio is called the capital market line (CML).
• C)The beta of a portfolio is the weighted average beta of the securities in the portfolio.
• D)By holding a negative beta security,an investor can reduce the overall market risk of her portfolio.

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Definitions:

Longitudinal Study

An observational research method that involves repeated observations of the same variables over a period of time.

Children's Development

The physical, cognitive, emotional, and social growth that occurs from infancy through adolescence.

Age

A measure of time that an individual, object, or concept has existed, often used as a variable in research for correlation with other factors.

Longitudinal

A research design that involves repeated observations of the same variables over short or long periods of time.