Which of the Following Statements Is FALSE

question 18

Multiple Choice

Which of the following statements is FALSE?

• A)Portfolios of large cap shares are typically less volatile than individual large cap shares.
• B)On average, Treasury notes have lower returns than corporate bonds.
• C)On average, larger cap shares have higher volatility than smaller cap shares.
• D)On average, smaller cap shares have higher returns than larger cap shares.

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Definitions:

Subjective Utility

An individual's perceived value or satisfaction obtained from choosing a particular action, often used in economic and psychological models of decision making.

Expected Value

Is the predicted value of a variable, calculated as the sum of all possible values each multiplied by the probability of its occurrence.

Service Contract

A legally binding agreement between two or more parties where one agrees to provide a specified service to the other for a payment.

Peace of Mind

A state of mental and emotional tranquility, free from stress or worry.