Which of the Following Statements Is FALSE

question 31

Multiple Choice

Which of the following statements is FALSE?

• A)Investments with higher volatility have rewarded investors with higher average returns.
• B)Riskier investments must offer investors higher average returns to compensate them for the extra risk they are taking on.
• C)Volatility seems to be a reasonable measure of risk when evaluating returns on large portfolios and the returns of individual securities.
• D)Investments with higher volatility should have a higher risk premium and, therefore, higher returns.

---

Definitions:

GLOBE Model

A research framework used for understanding the relationship between culture and societal, organizational, and leadership effectiveness across the world.

Collectivism-societal

An orientation valuing the goals, well-being, and views of the group over those of the individual, prevalent in various cultures and societies.

Cohesiveness

The degree to which members of a group or team are united in pursuing common goals, leading to a sense of unity and loyalty.

GLOBE Model

An investigative framework focused on exploring how culture influences the efficacy of societies, organizations, and leadership globally.