Which of the Following Statements Is FALSE

question 108

Multiple Choice

Which of the following statements is FALSE?

• A)An investor's preferences will determine only how much to invest in the tangent or efficient portfolio versus the risk-free investment.
• B)Conservative investors will invest a small amount in the tangent or efficient portfolio,choosing a portfolio on the line near the risk-free investment.
• C)Only aggressive investors will choose to hold the portfolio of risky assets,the tangent or efficient portfolio.
• D)Aggressive investors will invest more in the tangent portfolio choosing a portfolio that is near the tangent portfolio or even beyond it by buying stocks on margin.

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Definitions:

Federalist Party

A first American political party in the late 18th and early 19th centuries that favored a strong central government, commercial economy, and close ties with Great Britain.

Public Opinion

The aggregate of individual attitudes or beliefs held by the adult population.

War of 1812

A conflict fought between the United States and the British Empire, along with its indigenous allies, from 1812 to 1815, often cited for its impact on U.S. nationalism and expansion.

Old Northwest

A historical term for the territorial region of the United States northwest of the Ohio River, encompassing states like Ohio, Indiana, Illinois, Michigan, Wisconsin, and parts of Minnesota.