Which of the Following Statements Is FALSE

question 9

Multiple Choice

Which of the following statements is FALSE?

• A)Because investors are risk averse,they will demand a risk premium to hold unsystematic risk.
• B)Over any given period,the risk of holding a stock is that the dividends plus the final stock price will be higher or lower than expected,which makes the realized return risky.
• C)The risk premium for diversifiable risk is zero,so investors are not compensated for holding firm-specific risk.
• D)Because investors can eliminate firm-specific risk "for free" by diversifying their portfolios,they will not require a reward or risk premium for holding it.

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Definitions:

Homologous Chromosomes

Paired chromosomes in a diploid organism, one from each parent, that are similar in length, gene position, and centromere location, and pair up during meiosis.

Contractile Ring

A ring of protein filaments that forms during cell division, helping to divide the cell into two.

Cytokinesis

The process during cell division in which the cytoplasm divides to form separate daughter cells.

Plants

Multicellular, predominantly photosynthetic organisms of the kingdom Plantae, which play a crucial role in Earth's ecosystems.