Which of the Following Statements Is FALSE

question 125

Multiple Choice

Which of the following statements is FALSE?

• A)A portfolio that consists of a long position in the risk-free investment is known as a levered portfolio.
• B)The optimal portfolio will not depend on the investor's personal tradeoff between risk and return.
• C)The volatility of the risk-free investment is zero.
• D)Our total volatility is only a fraction of the volatility of the efficient portfolio,based on the amount we invest in the risk-free asset.

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Definitions:

Parking Rates

the fee charged for the use of a parking space, typically determined by duration and location.

Pricing Strategy

A plan or approach adopted by a business to set prices for its products or services to achieve specific marketing objectives.

LRMC

Long-Run Marginal Cost, which is the increase in cost a company faces to produce one additional unit of output when all factors of production are variable.

Infer High Quality

Deduce or conclude (information) to be of superior standards or excellent nature.