Which of the Following Statements Is FALSE

question 47

Multiple Choice

Which of the following statements is FALSE?

• A)Because diversification improves with the number of stocks held in a portfolio an efficient portfolio should be a large portfolio containing many different stocks.
• B)The beta of a security is the sensitivity of the security's return to the return of the overall market.
• C)An efficient portfolio cannot be diversified further,that is there is no way to reduce the risk of the portfolio without lowering its expected return.
• D)We call a portfolio that contains only unsystematic risk an efficient portfolio.

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Definitions:

Central Processing Unit

The primary component of a computer or digital system that performs the interpretation and execution of instructions.

Backplane

A printed circuit board, located in the back of a chassis, that contains a data bus, power bus, and mating connectors for modules to be inserted in the chassis.

Field Input Devices

Equipment or sensors that capture and transmit data from the external environment into a processing system for analysis and action.

Output Devices

Output devices are hardware components used to communicate the results of data processing carried out by a computer system to the user or another machine, including printers, monitors, and speakers.