Which of the Following Statements Is FALSE

question 84

Multiple Choice

Which of the following statements is FALSE?

• A)Because all investors should hold the risky securities in the same proportions as the efficient portfolio,their combined portfolio will also reflect the same proportions as the efficient portfolio.
• B)When the CAPM assumptions hold,choosing an optimal portfolio is relatively straightforward: it is the combination of the risk-free investment and the market portfolio.
• C)Graphically,when the tangent line goes through the market portfolio,it is called the security market line (SML).
• D)A portfolio's risk premium and volatility are determined by the fraction that is invested in the market.

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Definitions:

Apse

A recess, usually semicircular, in the wall of a building, commonly found at the east end of a church.

Monastery of Saint Catherine

An ancient monastery located at the foot of Mount Sinai in Egypt, it is one of the oldest working Christian monasteries in the world with a rich collection of art.

Non-verbal Communication

The process of transmitting messages without using words, including facial expressions, body language, gestures, and tone of voice.

Oral Communication

The process of verbally transmitting information and ideas from one individual or group to another.