Which of the Following Statements Is False Regarding the Investment

question 50

Multiple Choice

Which of the following statements is false regarding the investment opportunity set of two assets?

• A) If the correlation is + 1, it is a straight line.
• B) It graphically illustrates all possible portfolio combinations between the two assets.
• C) It is a straight line if one of the assets is risk-free.
• D) Assuming positive portfolio weights, it can never plot below the lowest expected return asset.
• E) It is not applicable when the assets have a zero correlation.

---

Definitions:

Stickleback

A small fish known for its distinctive spines on its back and its complex mating behaviors.

Fossil Evidence

Physical remnants of organisms from the past, preserved in geological formations, that provide information about the history of life on Earth.

Crystal Jellyfish

A species of jellyfish known for its transparent appearance and bioluminescent properties, often used in biological research.

Darwin's Theory

A scientific theory proposed by Charles Darwin that species evolve over time through a process of natural selection.