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Which statement is incorrect about portfolios and single stocks. a. Usually port

ID: 2647723 • Letter: W

Question

Which statement is incorrect about portfolios and single stocks.

a. Usually portfolios have better risk return tradeoff than single stocks.

b. Investors should hold portfolios instead of one single stock in their retirement accounts.

c. Single stocks always provide better returns because they are riskier.

d. Single stocks are not necessary to provide higher returns than portfolios.

a. Usually portfolios have better risk return tradeoff than single stocks.

b. Investors should hold portfolios instead of one single stock in their retirement accounts.

c. Single stocks always provide better returns because they are riskier.

d. Single stocks are not necessary to provide higher returns than portfolios.

Explanation / Answer

Incorrect statement:

c. Single stocks always provide better returns because they are riskier.