Which of the Following Statements Is FALSE

question 92

Multiple Choice

Which of the following statements is FALSE?

• A) Investments with higher volatility have rewarded investors with higher average returns.
• B) Investments with higher volatility should have a higher risk premium and, therefore, higher returns.
• C) Volatility seems to be a reasonable measure of risk when evaluating returns on large portfolios and the returns of individual securities.
• D) Riskier investments must offer investors higher average returns to compensate them for the extra risk they are taking on.

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Definitions:

Antiseizure Medications

Drugs used to prevent or control seizure activity in the brain, commonly prescribed for conditions like epilepsy.

Seizure Disorders

Medical conditions characterized by episodes of uncontrolled electrical activity in the brain, leading to changes in behavior, movements, or consciousness.

Dosage Gradually

Pertains to the method of adjusting a medication's amount or frequency incrementally over time to reach a desired effect.

Losing Consciousness

The state of passing out or fainting, resulting in a temporary loss of awareness and responsiveness.