Which of the Following Statements Is FALSE

question 131

Multiple Choice

Which of the following statements is FALSE?

• A)We say a portfolio is an efficient portfolio whenever it is possible to find another portfolio that is better in terms of both expected return and volatility.
• B)We can rule out inefficient portfolios because they represent inferior investment choices.
• C)The volatility of the portfolio will differ,depending on the correlation between the securities in the portfolio.
• D)Correlation has no effect on the expected return of a portfolio.

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Definitions:

Tax-Free

Financial or income transactions that are exempt from taxation by the government.

Key Employees

Individuals who have a significant impact on a company's performance, often holding positions that are crucial for the business's operations and strategic goals.

Insignificant Contributions

Inputs or efforts that have minimal impact or importance in the context of a larger goal or project.

Self-Employed

A person who works for themselves rather than an employer and is responsible for their own business operations.