Which of the Following Statements Is FALSE

question 25

Multiple Choice

Which of the following statements is FALSE?

• A)When an investor chooses her optimal portfolio,she will do so by finding the tangent line using the risk-free rate that corresponds to her investment horizon.
• B)If the market portfolio is not efficient,savvy investors who recognize that the market portfolio is not optimal will push prices and expected returns back into balance.
• C)Even though different investors may research different stocks,their information will not impact the market portfolio since there is no way to share this information with other investors.
• D)In the real world,borrowers pay higher interest rates than savers receive.

---

Definitions:

Investor-Owners

Individuals or entities that own investment assets, potentially including stocks, bonds, or real estate, aiming to earn a return on their investments.

Limited Liability Company

A business structure that combines the liability protection of a corporation with the tax benefits of a partnership.

Tax Advantages

Tax advantages are financial benefits that reduce the amount of tax owed by individuals or businesses, often through deductions, exemptions, or credits.

Liability Advantages

pertains to the benefits or favorable conditions arising from the structuring of legal entities or arrangements to minimize legal responsibility or financial risk.