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.

---

Definitions:

Katz

Refers to a model developed by Robert Katz that identifies three essential skills for effective leadership: technical, human, and conceptual skills.

Strategic Ideas

Strategic ideas are concepts or plans formulated to achieve a specific long-term goal or to gain a competitive advantage in a business or organizational context.

Skills Approach

A perspective on leadership that concentrates on the abilities and skills leaders can learn and develop, as opposed to traits they are born with.

Motivation

The process of stimulating individuals to take action towards achieving desired goals, influenced by both intrinsic and extrinsic factors.