Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A) The coefficient of variation is a better measure of risk than the standard deviation if the expected returns of the securities being compared differ significantly.
• B) Managers cannot act in the best interests of their shareholders unless they know their shareholders' average time preference for receiving their money and what risks a typical shareholder is prepared to assume.
• C) Companies should deliberately increase their risk relative to the market only if the actions that increase the risk also increase the expected rate of return on the firm's assets by enough to completely compensate for the higher risk.
• D) If the expected rate of return for a particular investment,as seen by the marginal investor,exceeds its required rate of return,we should soon observe an increase in demand for the investment,and the price will likely increase until a price is established that equates the expected return with the required return.
• E) All of the above statements are correct.

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Definitions:

Faulty Power

A situation where an electrical power supply is unstable, unreliable, or not functioning correctly.

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The rate at which data is transferred between different components of a computer through the bus, the main communication system, influencing overall computer performance.

Bottlenecking

Bottlenecking occurs when a limited component within a system restricts the performance or throughput, causing the entire system to slow down.

CPU Performs

The operations executed by the Central Processing Unit, including executing instructions from programs, performing calculations, and managing data flow.