Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)It is not actually necessary to identify the efficient portfolio itself.All that is required is to identify a collection of portfolios from which the efficient portfolio can be constructed.
• B)Although we might not be able to identify the efficient portfolio itself,we know some characteristics of the efficient portfolio.
• C)An efficient portfolio can be constructed from other diversified portfolios.
• D)An efficient portfolio need not be well diversified.

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Definitions:

Accounts Receivable

Funds that customers are required to pay to a company for products or services that have been provided but not yet compensated for.

Net Credit Sales

The total revenue from sales made on credit after subtracting returns and allowances.

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a specific period.

Inventory

Refers to the goods and materials a business holds for the purpose of resale or production.