Which of the Following Statements Is FALSE

question 72

Multiple Choice

Which of the following statements is FALSE?

• A)Expected return should rise proportionately with volatility.
• B)Investors would not choose to hold a portfolio that is more volatile unless they expected to earn a higher return.
• C)Smaller stocks have lower volatility than larger stocks.
• D)The largest stocks are typically more volatile than a portfolio of large stocks.

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Definitions:

Levellers

A political group in the time of the English Civil War that supported the ideas of the people having power, broader voting rights, equal treatment under the law, and acceptance of different religious beliefs.

Voting Rights

The entitlements which allow an individual to vote in public elections and have their voice heard in the democratic process.

Guiding Principles

Fundamental norms, rules, or values that represent what is desirable and positive for a person, group, organization, or community, and help it in determining the rightfulness or wrongfulness of its actions.

Parliamentary Consent

The approval or agreement by a parliament, especially required for legalizing legislation or decisions made by the government.