Which of the Following Statements Is False

question 79

Multiple Choice

Which of the following statements is false?

• A) If we increase the fraction invested in the efficient portfolio beyond 100% we are short selling the risk-free investment.
• B) As we increase the fraction invested in the efficient portfolio, we increase our risk premium, but not our risk, proportionately.
• C) To earn the highest possible expected return for any level of volatility we must find the portfolio that generates the steepest possible line when combined with the risk-free investment.
• D) Every investor should invest in the tangent portfolio independent of his or her taste for risk.

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Definitions:

Motivational Interviewing

A counseling approach that aims to engage individuals' motivation to change behaviors by exploring and resolving ambivalence.

Stages of Change

A model describing the process individuals go through to change their behavior, including precontemplation, contemplation, preparation, action, and maintenance.

Positive Change

An improvement in a situation or condition, reflecting a desirable or beneficial direction of change.

Co-facilitating

The process of two or more individuals jointly leading a group or session, sharing responsibilities for guiding discussions and activities.