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:

Lens

A piece of transparent material, usually made of glass or plastic, which refracts or focuses light rays, often used in glasses, cameras, and microscopes.

Amplitude

In the context of waves, it is the height of the wave from its resting position, indicating the wave's strength or intensity.

Brightness

This is perceived as the intensity or luminosity of light emitted or reflected by an object.

Optic Disc

A small, circular area in the retina where the optic nerve connects to the eye, marking the point of exit for retinal nerve fibers.