Which of the Following Statement(s)is (Are)false Regarding the Selection of a Portfolio

question 48

Multiple Choice

Which of the following statement(s) is (are) false regarding the selection of a portfolio from those that lie on the Capital Allocation Line?

• A)Less risk-averse investors will invest more in the risk-free security and less in the optimal risky portfolio than more risk-averse investors.
• B)More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than less risk-averse investors.
• C)Investors choose the portfolio that maximizes their expected utility.
• D)A and B.
• E)A and C.

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Definitions:

Anita Roddick

Founder of The Body Shop, known for her ethical approach to business and pioneering the use of environmentally friendly and cruelty-free cosmetic products.

Risk Takers

Individuals or entities that are willing to engage in actions that entail a significant chance of loss or failure in anticipation of a potential gain.

Act Collectively

refers to the process of making decisions or actions as a group, emphasizing collaboration and shared responsibility.

Risk-taking Individual

A person who is willing to undertake actions that involve risk, with the potential for significant rewards or losses.