Which of the Following Statements Is False

question 49

Multiple Choice

Which of the following statements is false?

• A) An investor's preferences will determine only how much to invest in the tangent or efficient portfolio versus the risk-free investment.
• B) Conservative investors will invest a small amount in the tangent or efficient portfolio, choosing a portfolio on the line near the risk-free investment.
• C) Only aggressive investors will choose to hold the portfolio of risky assets, the tangent or efficient portfolio.
• D) Aggressive investors will invest more in the tangent portfolio, choosing a portfolio that is near the tangent portfolio or even beyond it by buying stocks on margin.

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Definitions:

Level

A specific stage or degree in a hierarchy, process, or structure.

Main Events

The most significant or important occurrences within a given context, often defining or greatly impacting the overall scenario.

Characteristics

Attributes, traits, or qualities that distinguish an individual, object, or concept from others.

Experiential Associations

Connections formed between different experiences, ideas, or concepts based on personal exposure or involvement, often influencing attitudes and perceptions.