Which of the Following Statements Is FALSE

question 5

Multiple Choice

Which of the following statements is FALSE?

• A)The expected return of a portfolio is equal to the weighted average expected return,but the volatility of a portfolio is less than the weighted average volatility.
• B)Each security contributes to the volatility of the portfolio according to its volatility,scaled by its covariance with the portfolio,which adjusts for the fraction of the total risk that is common to the portfolio.
• C)Nearly half of the volatility of individual stocks can be eliminated in a large portfolio as a result of diversification.
• D)The overall variability of the portfolio depends on the total co-movement of the stocks within it.

---

Definitions:

Bulla

A large blister or skin vesicle filled with fluid, often appearing as a symptom of various diseases or skin conditions.

Skin Lesion

Any abnormal change in the tissue of an organism's skin, which could range from benign to malignant.

Greater

A term used to describe something that is larger or more in quantity when compared to another entity.

Skin Lesion

A part of the skin that has an abnormal growth or appearance compared to the skin around it.