Which of the Following Statements Is False

question 51

Multiple Choice

Which of the following statements is false?

• A) Graphically, the efficient portfolios are those on the northeast edge of the set of possible portfolios, an area which we call the efficient frontier.
• B) To arrive at the best possible set of risk and return opportunities, we should keep adding stocks until all investment opportunities are represented.
• C) We say a portfolio is short for those stocks that have negative portfolio weights.
• D) Adding new investment opportunities allows for greater diversification and improves the efficient frontier.

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Definitions:

Linear Perspective

A depth cue in psychology and art, suggesting that parallel lines appear to converge as they recede into the distance.

Binocular Disparity

The difference in the images on the retina of each eye that allows for depth perception and estimation of distances.

Perspective Cue

Visual signals that provide information about the depth, distance, and three-dimensionality of objects in relation to the observer.

Elevation

A positive emotional state that arises when witnessing virtuous acts of remarkable moral goodness, often leading to a desire to emulate such behavior.