Which of the following statements is FALSE?
A)Expected return should rise proportionately with volatility.
B)Investors would not choose to hold a portfolio that is more volatile unless they expected to earn a higher return.
C)Smaller stocks have lower volatility than larger stocks.
D)The largest stocks are typically more volatile than a portfolio of large stocks.

Question

Quizplus · Accepted Answer

Smaller stocks are typically more volatile than larger stocks, not less volatile as stated in option C. Options A, B, and D are all true statements.

Which of the Following Statements Is FALSE