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:

Sample Means

are the average values calculated from a subset of a population.

Sum of Squares

A statistical measure used in various contexts, representing the sum of the squared differences between each observation and the overall mean.

F-test

A statistical test used to compare the variances of two populations and determine if they are equal.

Population Means

The average value of a characteristic in a population, representing the central tendency.