Which of the following statements is false?
A)most mutual fund shares are traded on the New York Stock Exchange.
B)mutual funds hold assets in the form of corporate and government securities in excess of $2 trillion.
C)the total risk of an asset directly affects the market's return expectations for that asset.
D)all of the above statements are false.

Question

Quizplus · Accepted Answer

The first two statements are true, but the third statement is false. The total risk of an asset is only one factor that affects market return expectations. Other factors such as economic conditions, company performance, and investor sentiment also play a role in determining market return expectations.

Which of the Following Statements Is False