Which of the Following Is Not Correct

question 46

Multiple Choice

Which of the following is not correct?

• A)A risk averse person might be willing to hold stocks.
• B)Other things the same,a portfolio with the stocks of a large number of companies has less risk.
• C)Other things the same,the larger a portion of savings a person invests in stocks,the greater his expected return.
• D)Diversification can eliminate market risk but not firm-specific risk.

---

Definitions:

Aging Population

A demographic trend characterized by an increase in the median age of a population, often resulting from declining fertility rates and/or increasing life expectancy.

Fiscal Problems

Financial difficulties faced by a government due to a mismatch between its expenditures and revenues, leading to budget deficits and debt accumulation.

Poverty

The state of being extremely poor, with inadequate access to basic needs such as food, clean water, shelter, and education.

Epidemics

Widespread occurrences of an infectious disease in a community at a particular time, affecting a disproportionately high number of individuals.