Which of the Following Statements Is False

question 6

Multiple Choice

Which of the following statements is false?

• A) When an investor chooses her optimal portfolio, she will do so by finding the tangent line using the risk-free rate that corresponds to her investment horizon.
• B) If the market portfolio is not efficient, savvy investors who recognize that the market portfolio is not optimal will push prices and expected returns back into balance.
• C) Even though different investors may research different stocks, their information will not impact the market portfolio since there is no way to share this information with other investors.
• D) In the real world borrowers pay higher interest rates than savers receive.

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Definitions:

Scatter Rugs

Small area rugs or mats, often decorative, placed in various areas within a home to add comfort or aesthetic appeal.

Smoke Alarms

Devices designed to detect smoke as an indicator of fire, providing early warning signals to occupants of a building for safety.

Right Hemisphere Stroke

A stroke occurring in the right side of the brain, potentially affecting spatial awareness, judgment, and/or mobility on the left side of the body.

Partial Paralysis

Partial Paralysis is a condition where there is a loss of muscle function in part of the body, which may affect movement, but not completely prohibit it.