Which of the Following Statements Is False

question 64

Multiple Choice

Which of the following statements is false?

• A) A portfolio that consists of a long position in the risk-free investment is known as a levered portfolio.
• B) The optimal portfolio will not depend on the investor's personal tradeoff between risk and return.
• C) The volatility of the risk-free investment is zero.
• D) Our total volatility is only a fraction of the volatility of the efficient portfolio, based on the amount we invest in the risk free asset.

---

Definitions:

Complexity

A characteristic of systems, organizations, or problems that have multiple components which interact in various and unpredictable ways, making them difficult to understand or manage.

Cognitive Guide

A framework or tool designed to support decision-making processes by offering structured mental approaches to analyze and solve problems.

Shared Leadership Model

A leadership approach where leadership roles are distributed within a group or team, allowing members to share responsibility and make decisions collaboratively.

Diagnosing Group Deficiencies

The process of identifying and analyzing the weaknesses or shortcomings within a group that hinder its effectiveness.