Which of the Following Statements Is FALSE

question 40

Multiple Choice

Which of the following statements is FALSE?

• A)Graphically,the efficient portfolios are those on the northeast edge of the set of possible portfolios,an area which we call the efficient frontier.
• B)To arrive at the best possible set of risk and return opportunities,we should keep adding stocks until all investment opportunities are represented.
• C)We say a portfolio is short those stocks that have negative portfolio weights.
• D)Adding new investment opportunities allows for greater diversification and improves the efficient frontier.

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