Based on the Information Given Below, Which of the Following

question 46

Multiple Choice

Based on the information given below, which of the following statements is incorrect?

• A) Based on both risk and return, Investment D and Investment E should be considered equally risky.
• B) If Investment F is negatively related to both Investment D and Investment E, then combining Investment F with both Investment D and Investment E would always produce a portfolio with lower risk than a portfolio of Investment F and either one of the other investments combined.
• C) Investment F is the most desirable security for investors who are risk averse and who want to hold a one-security portfolio.
• D) An investor can purchase positive amounts of Investment D and Investment F and form a two-security portfolio with a return greater than 18 percent and a standard deviation less than 10 percent.
• E) None of the above statements is correct.

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Definitions:

Sales Presentation

A promotional talk or pitch aimed at generating interest in a product or service.

Prospect

A potential customer or client who has shown interest in a company's products or services but has not yet made a purchase.

Stalling Objection

A type of resistance shown by potential customers indicating hesitation or delay in making a purchasing decision.

Quaker Oats

A brand of oats and related products known for its breakfast cereals, owned by the PepsiCo conglomerate.