Which of the Following Statements Is FALSE

question 108

Multiple Choice

Which of the following statements is FALSE?

• A)An investor's preferences will determine only how much to invest in the tangent or efficient portfolio versus the risk-free investment.
• B)Conservative investors will invest a small amount in the tangent or efficient portfolio,choosing a portfolio on the line near the risk-free investment.
• C)Only aggressive investors will choose to hold the portfolio of risky assets,the tangent or efficient portfolio.
• D)Aggressive investors will invest more in the tangent portfolio choosing a portfolio that is near the tangent portfolio or even beyond it by buying stocks on margin.

---

Definitions:

Congress

The bicameral legislature of the federal government of the United States, consisting of two chambers: the Senate and the House of Representatives.

Iron Triangles

A concept in U.S. politics that captures the stable, mutually beneficial relationships among government agencies, interest groups, and congressional committees or subcommittees.

Committee System

The organizational method used by legislatures, such as the United States Congress, to manage and process legislation through specialized groups or committees.

Executive Branch

The branch of government responsible for implementing and enforcing laws, typically led by the president or prime minister and comprising departments and agencies.