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.

Analyze the relationship between fiscal policy, aggregate demand, and aggregate supply curves.

Explain the significance of government budget deficits and surpluses on the national economy.

Examine the implications of changes in government spending and taxation on the economic equilibrium.

Evaluate different fiscal policy tools in closing recessionary and expansionary gaps.

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Definitions:

Critical Period

A specific time during an organism's development when it is particularly sensitive to certain environmental stimuli, which can have irreversible effects on future development.

Ethological Theory

A perspective in developmental psychology that emphasizes the biological and evolutionary basis of behavior and how behavior evolves to satisfy the needs of the organism.

Ecological Theory

A framework for understanding the complex interrelations between organisms and their environment, emphasizing reciprocal influences.

Environmental Factors

Aspects of the environment that can influence living organisms, including natural elements like climate and man-made changes, which can impact health, behaviors, and development.