Which of the Following Statements Is FALSE

question 96

Multiple Choice

Which of the following statements is FALSE?

• A)In exchange for bearing systematic risk,investors want to be compensated by earning a higher return.
• B)A key step to measuring systematic risk is finding a portfolio that contains only unsystematic risk.
• C)When evaluating the risk of an investment,an investor will care about its systematic risk,which cannot be eliminated through diversification.
• D)To measure the systematic risk of a stock,we must determine how much of the variability of its return is due to systematic,market-wide risks versus diversifiable,firm-specific risks.

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Definitions:

Bodily Injury

Physical harm sustained by a person due to an accident or negligence.

Comprehensive Insurance

A type of auto insurance coverage that pays for damage to your car caused by events other than collisions, such as theft or natural disasters.

Average Speed

The total distance traveled divided by the total time taken for the journey.

Miles

A unit of distance used primarily in the United States and the United Kingdom, equivalent to 1,609 meters or approximately 1.609 kilometers.