Which of the Following Statements Is FALSE

question 123

Multiple Choice

Which of the following statements is FALSE?

• A)Without trading,the portfolio weights will decrease for the stocks in the portfolio whose returns are above the overall portfolio return.
• B)The expected return of a portfolio is simply the weighted average of the expected returns of the investments within the portfolio.
• C)Portfolio weights add up to 1 so that they represent the way we have divided our money between the different individual investments in the portfolio.
• D)A portfolio weight is the fraction of the total investment in the portfolio held in an individual investment in the portfolio.

---

Definitions:

Edfu

An Egyptian city known for its well-preserved Ptolemaic temple, dedicated to the falcon god Horus, which is one of the best-preserved temples in Egypt.

Temple

A building dedicated to religious or spiritual activities, such as worship and prayer, commonly associated with a particular deity or religion.

Horus

An ancient Egyptian god, typically depicted as a falcon or a man with a falcon's head, representing the sky, war, and hunting, and known as a protector of the pharaoh.

Canon

A rule (for example, of proportion). The ancient Greeks considered beauty to be a matter of “correct” proportion and sought a canon of proportion, for the human figure and for buildings. The fifth-century BCE sculptor Polykleitos wrote the Canon, a treatise incorporating his formula for the perfectly proportioned statue. Also, a church official who preaches, teaches, administers sacraments, and tends to pilgrims and the sick.