Which of the Following Statements Is FALSE

question 96

Multiple Choice

Which of the following statements is FALSE?

• A)When the correlation between securities is less than 1, the volatility of the portfolio is reduced due to diversification.
• B)An investor seeking high returns and low volatility should only invest in an efficient portfolio.
• C)Efficient portfolios can be easily ranked, because investors will choose from among them those with the highest expected returns.
• D)When shares are perfectly positively correlated, the set of portfolios is identified graphically by a straight line between them.

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Definitions:

Globe Theatre

A historic theater in London associated with William Shakespeare, known for its open-air, circular design.

Pronoun

A word that takes the place of a noun, used to avoid repetition or to refer to participants in the discourse.

Pronoun

A part of speech that is used in place of a noun or noun phrase, often to avoid repetition or when the antecedent is understood.

Performers

Individuals who entertain audiences by acting, singing, dancing, or playing musical instruments.