Which of the Following Statements Is FALSE

question 53

Multiple Choice

Which of the following statements is FALSE?

• A) The risk premium of a security is equal to the market risk premium divided by the amount of market risk present in the security's returns measured by its beta with the market.
• B) The beta of a portfolio is the weighted average beta of the securities in the portfolio.
• C) There is a linear relationship between a stock's beta and its expected return.
• D) A security with a negative beta has a negative correlation with the market, which means that this security tends to perform well when the rest of the market is doing poorly.

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Definitions:

Reuse Code

The practice of using existing software components or code snippets in new or different projects to save time and effort.

Software Productivity

A measure of the efficiency of a software development process, often evaluated by the quantity and quality of software produced within a given timeframe.

Data Type

A category that distinguishes the different varieties of data, like integer, floating-point, or string, defining the potential values for that category, the operations applicable to it, and the method of its storage.

Operations

Basic actions that can be performed on data, including mathematical and logical operations.