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.

---

Definitions:

Recommendations

Suggestions or proposals offered for consideration and action based on analysis and insights.

Eyeliner

A cosmetic product used to define the eyes by applying a contour around the eye area to create various aesthetic effects.

Efficient Distribution

The process of effectively managing the movement of goods from the point of production to the end-user or customer with minimal waste and cost.

Expensive Furnishings

High-cost furniture and decor items that are often high-quality or luxurious.