Use the Table for the Question(s)below

question 89

Multiple Choice

Use the table for the question(s) below.
Consider the following covariances between securities:
-Which of the following statements is FALSE?

• A)When stocks are perfectly positively correlated,the set of portfolios is identified graphically by a straight line between them.
• B)An investor seeking high returns and low volatility should only invest in an efficient portfolio.
• C)When the correlation between securities is less than 1,the volatility of the portfolio is reduced due to diversification.
• D)Efficient portfolios can be easily ranked,because investors will choose from among them those with the highest expected returns.

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Definitions:

Swordtail Cricket

A type of cricket known for its elongated tail structures, which resemble swords and are used in mating displays and territorial disputes.

Speciation

The process by which populations evolve to become distinct species, often due to genetic isolation from other populations.

Phylogeny

The evolutionary history and the relationships among a species or group of species.

Sympatric Speciation

The evolution of new species from a single ancestral species while inhabiting the same geographical region, without geographic isolation.