Which of the Following Statements Is False

question 75

Multiple Choice

Which of the following statements is false?

• A) Margin investing is a risky investment strategy.
• B) Because our return on the risk-free investments is fixed and does not move with (or against) our portfolio, the correlation between the risk-free investment and the portfolio is always equal to one.
• C) Short selling the risk-free investment is equivalent to borrowing money at the risk-free interest rate through a standard loan.
• D) Margin investing can provide higher expected returns than investing in the efficient portfolio using only the funds we have available.

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Definitions:

Natural Habitat

The original environment or ecosystem in which a particular species lives and evolves, providing necessary resources for its survival.

Primates

An order of mammals that includes humans, apes, monkeys, and prosimians, characterized by their large brains, forward-facing eyes, and opposable thumbs.

Behavioral Patterns

Repetitive actions or reactions exhibited by individuals often in response to certain stimuli or conditions, which can be common among specific groups or species.

Cultural Behavior

Actions and practices that are learned and shared within a culture, often reflecting the values and norms of that culture.