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.

---

Definitions:

Unconditional Duty

An obligation that must be fulfilled without any conditions or stipulations.

World Famous

describes a person, place, or thing that is widely recognized and honored across the globe.

Breach of her Contract

The failure or refusal to fulfill the terms agreed upon in a contract by a female party involved.

Condition

In contract law, a future, uncertain event that creates or extinguishes a duty of performance; a provision or clause in a contract that operates to suspend or rescind a party’s duty to perform.