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:

Caste System

A traditional form of social stratification based on heredity, primarily found in India, classifying people into rigid hierarchical groups based on their occupation and birth.

Hierarchical System

A structured organization of positions or levels in which entities are ranked one above the other based on authority or status.

Genetic Variation

The diversity of gene frequencies within a population, which contributes to differences in physical, physiological, and behavioral attributes.

Traditionally Defined

Characterized or specified according to historical or long-established patterns, norms, or interpretations.