Final answer:
The statement that is not true regarding economic, industry, security, and portfolio analysis is that individual securities must each meet the risk and return objectives. The portfolio as a whole should meet these objectives.
Step-by-step explanation:
All of the following statements regarding economic, industry, security, and portfolio analysis are true except individual securities must each meet the risk and return objectives. While individual securities need to align with the overall risk and return parameters of the portfolio, each security doesn't need to meet those objectives independently. Instead, the portfolio as a whole should be constructed to meet these objectives, with some securities potentially taking on more risk or less return based on their role in the overall investment strategy.
Industry analysis can indeed lead to certain industries being excluded from a portfolio, especially if they don't meet the investor's ethical standards or if they carry risk profiles that are incongruent with the portfolio's objectives. Portfolio analysis is about finding the optimal allocation of securities to achieve efficiency and desired risk-return profile. Finally, economic analysis does include reviewing actions by the Federal Reserve Board, as these actions can have a significant impact on economic conditions, which in turn affects investment decisions.