Which of the Following Statements Is False

question 6

Multiple Choice

Which of the following statements is false?

• A) When an investor chooses her optimal portfolio, she will do so by finding the tangent line using the risk-free rate that corresponds to her investment horizon.
• B) If the market portfolio is not efficient, savvy investors who recognize that the market portfolio is not optimal will push prices and expected returns back into balance.
• C) Even though different investors may research different stocks, their information will not impact the market portfolio since there is no way to share this information with other investors.
• D) In the real world borrowers pay higher interest rates than savers receive.

---

Definitions:

Horizontal Marketing System

A collaboration strategy where companies at the same level of the value chain join forces to exploit a marketing opportunity.

Administered Vertical Marketing System

A coordinated marketing system managed by a single channel member to achieve efficient distribution.

Wholesaler-sponsored Voluntary Chains

Agreements between independent retailers and wholesalers to engage in bulk buying and standardized selling practices to compete with large chains.

Retailer-sponsored Cooperatives

Retailer-sponsored Cooperatives are groups of independent retailers who collaborate to pool buying power and resources in order to compete with larger chains.