Which of the Following Statements Is False

question 130

Multiple Choice

Which of the following statements is false?

• A) We say a portfolio is long those stocks that have negative portfolio weights.
• B) The efficient portfolios are those portfolios offering the highest possible expected return for a given level of volatility.
• C) When two stocks are perfectly negatively correlated, it becomes possible to hold a portfolio that bears absolutely no risk.
• D) The lower the correlation of the securities in a portfolio the lower the volatility we can obtain.

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Illegality

The state or condition of being contrary to law or forbidden by law.

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Rules or directives made and maintained by authority, governing behavior within a specific system, often within the context of industries, professions, or societal laws.

Emancipated

A legal status achieved by a minor, often through a court decision, which grants them the rights and responsibilities of adulthood.