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:

Surplus

The excess of a good or service that occurs when the quantity supplied exceeds the quantity demanded; surpluses occur when the price is above the equilibrium price.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicative of the product's sensitivity to price changes.

Availability of Substitutes

The presence of alternative goods or services that consumers can switch to when prices rise or quality decreases, affecting market demand and competition.

Bus Service

A public or private system offering regular travel on established routes by buses for the transportation of individuals.