Which of the Following Statements Is FALSE

question 95

Multiple Choice

Which of the following statements is FALSE?

• A)A combination of portfolios on the efficient frontier of risky investments is also on the efficient frontier of risky investments.
• B)The conclusion of the CAPM that investors should hold the market portfolio combined with the risk-free investment depends on the quality of an investor's information.
• C)The SML holds with some rate r* between rs and rb in place of rf,where r* depends on the proportion of savers and borrowers in the economy.
• D)In reality,investors have different information and spend varying amounts of effort on research for assorted stocks.

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Definitions:

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Extinction

The process by which a species, genus, or family of organisms becomes extinct, no longer existing and living in the world.

Spontaneous Recovery

The rebirth of an extinguished response after a break, without the need for relearning.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.