Which of the Following Statements Is FALSE

question 84

Multiple Choice

Which of the following statements is FALSE?

• A)Because all investors should hold the risky securities in the same proportions as the efficient portfolio,their combined portfolio will also reflect the same proportions as the efficient portfolio.
• B)When the CAPM assumptions hold,choosing an optimal portfolio is relatively straightforward: it is the combination of the risk-free investment and the market portfolio.
• C)Graphically,when the tangent line goes through the market portfolio,it is called the security market line (SML).
• D)A portfolio's risk premium and volatility are determined by the fraction that is invested in the market.

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Definitions:

Heterozygous

Refers to a chromosome pair that bears different alleles for a single gene.

Alleles

Alternate forms of a single gene.

Primates

An order of mammals that includes humans, monkeys, and apes, characterized by large brains, forward-facing eyes, and dexterous hands.