Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A) A combination of portfolios on the efficient frontier of risky investments is also on the efficient frontier of risky investments.
• B) The conclusion of the CAPM that investors should hold the market portfolio combined with the risk-free investment depends on the quality of an investor's information.
• C) The SML holds with some rate r* between r_s and r_b in place of r_f, where r* depends on the proportion of savers and borrowers in the economy.
• D) In reality, investors have different information and spend varying amounts of effort on research for assorted stocks.

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Definitions:

Overregularization

A language acquisition error where children apply general grammatical rules too broadly, often leading to grammatical mistakes.

Syntax Error

A mistake in the structure of a sequence of characters or symbols within a program code that prevents it from being compiled or executed.

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Socially Homogeneous

Describing a society or a group in which members share similar backgrounds, beliefs, and characteristics, often resulting in minimal diversity.