Which of the Following Statements Is FALSE

question 125

Multiple Choice

Which of the following statements is FALSE?

• A)A portfolio that consists of a long position in the risk-free investment is known as a levered portfolio.
• B)The optimal portfolio will not depend on the investor's personal tradeoff between risk and return.
• C)The volatility of the risk-free investment is zero.
• D)Our total volatility is only a fraction of the volatility of the efficient portfolio,based on the amount we invest in the risk-free asset.

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Definitions:

Industry Environmental Factors

External influences that affect an industry’s performance, including economic, technological, legal, and socio-cultural elements.

Resource Suppliers

Entities or individuals that provide the essential materials, equipment, or services required by an organization to conduct its operations.

Strategic Management

The process of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.

Future Planning

The process of setting goals and outlining strategies and actions to achieve those goals, considering predictions about future conditions and challenges.