Which of the Following Statements Is FALSE

question 92

Multiple Choice

Which of the following statements is FALSE?

• A)A portfolio is efficient if it has the highest possible Sharpe ratio;that is,it is efficient if it provides the largest increase in expected return possible for a given increase in volatility.
• B)The required return for an investment is equal to a risk premium that is equal to the risk premium of the investor's current portfolio scaled by .
• C)Increasing the investment in investment i will increase the Sharpe ratio of portfolio P if its expected return E[Ri] exceeds the required return ri,which is given by ri = rf + × (E[Rp] - rf).
• D)If security i's expected return is less than the required return ri,we should reduce our holding of security i.

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Definitions:

Cancellous Bone

a type of bone that is less dense, more porous, and found at the ends of long bones and in the inner layers of most bones, important for metabolic processes.

Compact Bone

The compact, rigid external layer of bone that offers support and form.

Tubular

Describes something that is long, hollow, and cylindrical, often used in reference to certain structures or shapes in biology and manufacturing.

Compact Bone

The dense, hard outer layer of bone that gives it strength and houses osteocytes in a rigid framework.