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:

P-value

The probability of obtaining test results at least as extreme as the results observed during the test, assuming that the null hypothesis is correct.

F Value

A statistic used in ANOVA tests, representing the ratio of variance between groups to variance within groups.

P-value

The likelihood of achieving a test statistic as extreme or more so than the observed one, under the assumption that the null hypothesis holds.

Degrees of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution or to a system of equations, minus the number of equations constraining them, crucial in significance testing.