Which of the Following Statements Is FALSE

question 25

Multiple Choice

Which of the following statements is FALSE?

• A)When an investor chooses her optimal portfolio,she will do so by finding the tangent line using the risk-free rate that corresponds to her investment horizon.
• B)If the market portfolio is not efficient,savvy investors who recognize that the market portfolio is not optimal will push prices and expected returns back into balance.
• C)Even though different investors may research different stocks,their information will not impact the market portfolio since there is no way to share this information with other investors.
• D)In the real world,borrowers pay higher interest rates than savers receive.

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Definitions:

Crossed Aldol Reaction

An aldol reaction where two different aldehydes or ketones are combined in the presence of a base or acid to produce a β-hydroxy aldehyde or ketone.

Self-aldol Condensation

A reaction where an aldehyde or ketone undergoes condensation with itself in the presence of a base to form a β-hydroxycarbonyl compound (an aldol) or a dehydrated version thereof.

Predict Outcome

The process of forecasting or determining the probable results or consequences of a chemical reaction or experiment.

Self-condensation

A reaction in which a molecule undergoes condensation with itself to form a larger molecule, often in the presence of a catalyst.