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.
Correct Answer:
Verified
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Big Cure
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Consider the
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A) undiversifiable risk.
B)
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Consider
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Consider
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Consider the
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