Which of the Following Statements Is FALSE

question 45

Multiple Choice

Which of the following statements is FALSE?

• A)We say a portfolio is long those stocks that have negative portfolio weights.
• B)The efficient portfolios are those portfolios offering the highest possible expected return for a given level of volatility.
• C)When two stocks are perfectly negatively correlated,it becomes possible to hold a portfolio that bears absolutely no risk.
• D)The lower the correlation of the securities in a portfolio the lower the volatility we can obtain.

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Definitions:

Pea Plant

A legume plant (Pisum sativum) used extensively in genetics studies, particularly by Gregor Mendel, for understanding heredity.

Incompletely Dominant

Pertains to a genetic scenario where the phenotype of the heterozygote is intermediate between the phenotypes of both homozygotes, indicating that neither allele is fully dominant over the other.

Homozygous

Referring to an individual having two identical alleles for a specific gene, resulting in a certain trait being expressed.

Homozygote

An organism that has two identical alleles for a specific trait or gene.