Which of the Following Statements Is False

question 106

Multiple Choice

Which of the following statements is false?

• A) Because all investors should hold the risky securities in the same proportions as the efficient portfolio, their combined portfolio will also reflect the same proportions as the efficient portfolio.
• B) When the CAPM assumptions hold, choosing an optimal portfolio is relatively straightforward: it is the combination of the risk-free investment and the market portfolio.
• C) Graphically, when the tangent line goes through the market portfolio, it is called the security market line (SML).
• D) A portfolio's risk premium and volatility are determined by the fraction that is invested in the market.

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Definitions:

Obsessions

Persistent and intrusive thoughts, impulses, or images that cause significant anxiety or distress.

Consciousness

The state of being awake and aware of one's surroundings and thoughts.

Persistent Thoughts

Repeated, ongoing thoughts that may be intrusive and unwelcome, often associated with anxiety or obsessive-compulsive disorders.

Antidepressants

Medications primarily used to treat depression by altering brain chemistry to improve mood and stress-coping mechanisms.