Which of the Following Statements Is False

question 103

Multiple Choice

Which of the following statements is false?

• A) If some security were not part of the efficient portfolio, then every investor would want to own it, and demand for this security would increase, causing its expected return to fall until it was no longer an attractive investment.
• B) The efficient portfolio, the portfolio that all investors should hold, must be the same portfolio as the market portfolio of all risky securities.
• C) Because every security is owned by someone, the sum of all investors' portfolios must equal the portfolio of all risky securities available in the market.
• D) If all investors demand the efficient portfolio, and since the supply of securities is the market portfolio, then the two portfolios must coincide.

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Definitions:

Field Placement

A component of educational programs where students gain practical experience in their field of study by working in a relevant organization or setting.

Training Experience

The practical learning and skill acquisition gained through participating in specific educational programs or on-the-job activities.

Interviewer

A person who asks questions from another person, especially in a formal or structured setting, such as for a job interview or research purpose.

Field Supervisors

Professionals who oversee and provide guidance to individuals during practical training or fieldwork in their specific area of expertise.