Which of the Following Statements Is False

question 66

Multiple Choice

Which of the following statements is false?

• A) Short-term margin loans from a broker are often 1% to 2% lower than the rates paid on short-term Treasury securities.
• B) In the real world investors have different information and expectations regarding securities.
• C) The SML is still valid when interest rates differ.
• D) When borrowing and lending occur at different rates there are different tangent portfolios identified.

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Definitions:

Multiproduct Company

A business entity that manufactures or sells more than one type of product, often across different product lines or industries.

Sales Volumes

The total quantity of a product or service sold by a company during a specific period.

Multiproduct CVP Analysis

A Cost-Volume-Profit analysis extension that assesses the profit impact of selling multiple products, considering their respective contribution margins and fixed costs.

Changing Sales Mix

Refers to alterations in the proportion of different products or services sold by a company, impacting revenue and costs.