Which of the Following Statements Is FALSE

question 125

Multiple Choice

Which of the following statements is FALSE?

• A)A portfolio that consists of a long position in the risk-free investment is known as a levered portfolio.
• B)The optimal portfolio will not depend on the investor's personal tradeoff between risk and return.
• C)The volatility of the risk-free investment is zero.
• D)Our total volatility is only a fraction of the volatility of the efficient portfolio,based on the amount we invest in the risk-free asset.

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Definitions:

Circadian Rhythm

An internal biological clock regulating the sleep-wake cycle and other physiological processes in a roughly 24-hour cycle.

Weekends

The part of the week traditionally reserved for rest and leisure activities, in many cultures spanning Saturday and Sunday.

Staying Up

The act of remaining awake, especially longer than usual or during the night.

Dual Processing

The theory that the brain operates using two types of processing, automatic and controlled, both of which are important for cognition and behavior.