Which of the Following Statements Is False

question 2

Multiple Choice

Which of the following statements is false?

• A) The tangent portfolio is efficient and, once we include the risk-free investment, all efficient portfolios are combinations of the risk-free investment and the tangent portfolio.
• B) The optimal portfolio of risky investments depends on how conservative or aggressive the investor is.
• C) By combining the efficient portfolio with the risk-free investment, an investor will earn the highest possible expected return for any level of volatility her or she is willing to bear.
• D) The efficient portfolio is the tangent portfolio, the portfolio with the highest Sharpe ratio in the economy.

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Definitions:

Thyroidectomy

A surgical procedure to remove all or part of the thyroid gland.

Thyroid Gland

An endocrine gland in the neck that produces hormones regulating heart rate, body temperature, and metabolism.

Acromegaly

A hormonal disorder that results from an excess of growth hormone after the growth plates have closed, leading to enlarged bones in the hands, feet, and face.

Cretinism

A condition of severely stunted physical and mental growth due to untreated congenital deficiency of thyroid hormones.