Which of the Following Statements Is FALSE

question 90

Multiple Choice

Which of the following statements is FALSE?

• A)The tangent portfolio is efficient and,once we include the risk-free investment,all efficient portfolios are combinations of the risk-free investment and the tangent portfolio.
• B)The optimal portfolio of risky investments depends on how conservative or aggressive the investor is.
• C)By combining the efficient portfolio with the risk-free investment,an investor will earn the highest possible expected return for any level of volatility he or she is willing to bear.
• D)The efficient portfolio is the tangent portfolio,the portfolio with the highest Sharpe ratio in the economy.

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Definitions:

Agreeableness

A personality trait typified by compassion, cooperativeness, and a harmonious attitude toward others.

Antagonism

Hostility or opposition between individuals or groups, often resulting in conflict or resistance.

Trait Domains

Categories or clusters of personality traits that share similar characteristics or themes.

Avoidant

A personality trait characterized by a persistent pattern of avoiding social interaction and minimizing social contact due to fear of rejection, criticism, or disapproval.