Which of the Following Statements Is False Regarding the Portfolio

question 81

Multiple Choice

Which of the following statements is false regarding the portfolio selection problem?

• A) The typical objective is to maximize the expected return on investment
• B) The contraints only pertain to risk
• C) Typical applications include banks, mutual funds, investment services, and insurance companies
• D) The problem typically includes both greater-than-or-equal-to and less-than-or-equal-to constraints
• E) The problem can also factor in legal requirements

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Definitions:

Long-Term Investments

Assets intended to be held for more than one year, including stocks, bonds, real estate, and other financial instruments.

Financial Markets

Platforms or systems where buyers and sellers engage in the trading of financial assets such as stocks, bonds, currencies, and derivatives.

Benchmark

A standard or point of reference against which things may be compared or assessed.