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.

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Definitions:

Conscientiousness

A personality trait characterized by organization, dependability, and discipline.

Neuroticism

A personality trait involving a long-term tendency to be in a negative emotional state, such as anxiety, depression, and emotional instability.

Big Five Trait Dimension

A psychological framework that characterizes human personality using five wide-ranging dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Neuroticism

A personality trait characterized by a tendency towards anxiety, moodiness, worry, and jealousy.