Which of the Following Statements Is FALSE

question 95

Multiple Choice

Which of the following statements is FALSE?

• A)A combination of portfolios on the efficient frontier of risky investments is also on the efficient frontier of risky investments.
• B)The conclusion of the CAPM that investors should hold the market portfolio combined with the risk-free investment depends on the quality of an investor's information.
• C)The SML holds with some rate r* between rs and rb in place of rf,where r* depends on the proportion of savers and borrowers in the economy.
• D)In reality,investors have different information and spend varying amounts of effort on research for assorted stocks.

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Definitions:

Neurons

Nervous system cells responsible for conveying information to other neurons, muscles, or glands.

Hemisphere

Each of the two halves of the brain or the globe, typically referred to as the left and right in the brain, and northern and southern in terms of the earth.

Language

A system of communication that uses symbols, such as words, sounds, or gestures, to convey meaning.

Visual-Spatial

Relating to the ability to perceive the spatial relationship between objects, often involved in tasks requiring visual imagery or navigation.