Which of the Following Statements Is False

question 108

Multiple Choice

Which of the following statements is false?

• A)Beta is meaningful only if an investor holds a well-diversified portfolio.
• B)You can completely eliminate risk if you hold a well-diversified portfolio.
• C)A portfolio composed of only one stock will not be well diversified.
• D)A wise investor diversifies to capture the high average return of stocks while avoiding as much risk as possible.
• E)All of the above statements are correct.

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Definitions:

Stressful Life Events

Events or situations that cause significant stress, potentially affecting an individual's mental and physical health.

Physical Health

A state of well-being in which an individual is free from illness, injury, or pain, and can perform daily activities effectively.

Chronic Stress

A persistent state of emotional pressure and tension resulting from adverse or demanding circumstances over a long period.

Social Mobility

The movement of individuals, families, or groups through a system of social hierarchy or stratification.