Which of the Following Statements Is False

question 41

Multiple Choice

Which of the following statements is false?

• A) If some security were not part of the efficient portfolio, then every investor would want to own it, and demand for this security would increase causing its expected return to fall until it is no longer an attractive investment.
• B) The efficient portfolio, the portfolio that all investors should hold, must be the same portfolio as the market portfolio of all risky securities.
• C) Because every security is owned by someone, the sum of all investors' portfolios must equal the portfolio of all risky securities available in the market.
• D) If all investors demand the efficient portfolio, and since the supply of securities is the market portfolio, then two portfolios must coincide.

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Definitions:

Inoculations

The process of introducing a vaccine into the body to produce immunity to a specific disease.

Sewerage

The infrastructure designed for the collection, transport, and disposal of sewage.

Drinking Water

Water that is safe for human consumption, free from contaminants and pathogens.

Life Expectancy

The average period that a person may expect to live, based on the statistical analysis of age-specific death rates.