Which of the following statements is FALSE?
A)Portfolios of large cap shares are typically less volatile than individual large cap shares.
B)On average, Treasury notes have lower returns than corporate bonds.
C)On average, larger cap shares have higher volatility than smaller cap shares.
D)On average, smaller cap shares have higher returns than larger cap shares.

Question

Quizplus · Accepted Answer

On average, smaller cap shares have higher volatility than larger cap shares, not the other way around. This is because smaller companies are generally considered riskier investments, leading to higher volatility in their share prices compared to larger, more established companies.

Which of the Following Statements Is FALSE