Which of the Following Statements Is False

question 34

Multiple Choice

Which of the following statements is false?

• A) Adding additional securities to a portfolio only reduces market risk.
• B) The risk-return relationship relates only to market risk.
• C) Reducing market risk usually implies sacrificing expected return.
• D) The appropriate measure of risk should only consider the incremental risk a security adds to a well-diversified portfolio.
• E) Investors are usually not fully compensated for bearing the total risk associated with a security.

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Definitions:

Rural Poverty

Economic hardship experienced by individuals and families living in rural areas, often characterized by limited access to resources, education, and employment.

Native American Groups

Indigenous peoples of the United States, including various tribes, nations, and bands, each with their own distinct cultures, languages, and histories.

Urban

Pertaining to or characteristic of a city or town.

Suburban Americans

Refers to the demographic group residing in suburban areas, often characterized by a lifestyle distinct from that in urban or rural settings.