Which of the Following Statements Is FALSE

question 40

Multiple Choice

Which of the following statements is FALSE?

• A)Graphically,the efficient portfolios are those on the northeast edge of the set of possible portfolios,an area which we call the efficient frontier.
• B)To arrive at the best possible set of risk and return opportunities,we should keep adding stocks until all investment opportunities are represented.
• C)We say a portfolio is short those stocks that have negative portfolio weights.
• D)Adding new investment opportunities allows for greater diversification and improves the efficient frontier.

---

Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the influence of consequences on behavior.

Shaping

A method of operant conditioning by which successive approximations toward a desired behavior are reinforced.

Conditioned Stimulus

A stimulus that initially has no inherent value but acquires significance and the ability to elicit a response through its association with an unconditioned stimulus.