Which of the Following Statements Is FALSE

question 59

Multiple Choice

Which of the following statements is FALSE?

• A)Fluctuations of a share's returns that are due to firm-specific news are common risks.
• B)The volatility in a large portfolio will decline until only the systematic risk remains.
• C)The risk premium of a security is determined by its systematic risk and does not depend on its diversifiable risk.
• D)When we combine many shares in a large portfolio, the firm-specific risks for each share will average out and be diversified.

---

Definitions:

Language Abilities

The capacity to understand, produce, and use complex systems of communication, particularly human language.

Toddlers

Young children, typically aged between one and three years old, who are just beginning to walk and talk.

Fast Mapping

The process by which children are able to learn the meaning of a new word after only a brief encounter.

Gene Expression

The process by which the information encoded in a gene is used to direct the assembly of a protein molecule.