Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A) We say a portfolio is an efficient portfolio whenever it is possible to find another portfolio that is better in terms of both expected return and volatility.
• B) Correlation has no effect on the expected return on a portfolio.
• C) The volatility of the portfolio will differ, depending on the correlation between the securities in the portfolio.
• D) We can rule out inefficient portfolios because they represent inferior investment choices.

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Definitions:

Mixed Message

A communication that contains conflicting or contradictory information, leading to confusion or misunderstanding.

Rescission

The cancellation of a contract, returning all parties involved to their states prior to the contract's execution.

Innocent Representation

A truthful statement or declaration made without the intent to deceive, typically relevant in contracts or negotiations.

Mistake Of Law

An error made by a person in understanding the law as it pertains to their actions or a situation.