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.

Explain the role of expectations in economic models and their impact on economic variables.

Understand the foundational principles and attributions of positive psychology.

Identify the focus areas of positive psychology including positive institutions, individual traits, and subjective experiences.

Distinguish between positive and negative psychological approaches and their impacts on mental health.

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Definitions:

Standard Costs

Predetermined or estimated costs used for budgeting and measuring performance, typically under ideal operating conditions.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, based on budgeted or planned amounts.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating manufacturing overhead in cost accounting.

Variable Manufacturing Overhead

This refers to the expenses in manufacturing that vary in direct proportion to the volume of production, such as utilities and materials.