Which of the Following Statements Is False

question 57

Multiple Choice

Which of the following statements is false?

• A)Competitive advantage is based on some measurement such as cost, quality, or speed.
• B)Competitive advantage enables a company to function effectively within a market.
• C)Competitive advantage leads to higher-than-average profits.
• D)Competitive advantage requires the use of technology.
• E)Competitive advantage applies to companies of all sizes.

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Definitions:

Unsystematic Portion

The segment of risk in an investment portfolio that can be mitigated through diversification, specific to individual securities.

Expected Return

The weighted average of all possible returns for an investment, with weights representing the probabilities of each outcome.

Total Risk

The entire range of uncertainties including market and specific risks that affect the value of an investment.

Unsystematic Risk

The risk associated with a particular company or industry, as opposed to the market as a whole; also known as specific or idiosyncratic risk.