Which of the Following Statements Is FALSE

question 90

Multiple Choice

Which of the following statements is FALSE?

• A)The tangent portfolio is efficient and,once we include the risk-free investment,all efficient portfolios are combinations of the risk-free investment and the tangent portfolio.
• B)The optimal portfolio of risky investments depends on how conservative or aggressive the investor is.
• C)By combining the efficient portfolio with the risk-free investment,an investor will earn the highest possible expected return for any level of volatility he or she is willing to bear.
• D)The efficient portfolio is the tangent portfolio,the portfolio with the highest Sharpe ratio in the economy.

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Definitions:

Philip Zimbardo

A psychologist known for conducting the Stanford prison experiment, which explored the effects of perceived power and authority on behavior.

Negative Attitudes

Dislike or adverse feelings towards a particular idea, object, or person.

Social Expectations

The anticipated standards of behavior set by society for individuals to follow, which can influence personal interactions and social behavior.

Social Facilitation

The enhancement of performance in the presence of others, commonly observed in various social contexts.