Which of the Following Statements Is False

question 91

Multiple Choice

Which of the following statements is false?

• A) We say a portfolio is an efficient portfolio whenever it is possible to find another portfolio that is better in terms of both expected return and volatility.
• B) We can rule out inefficient portfolios because they represent inferior investment choices.
• C) The volatility of the portfolio will differ, depending on the correlation between the securities in the portfolio.
• D) Correlation has no effect on the expected return on a portfolio.

---

Definitions:

Confucianism

A philosophical and ethical system based on the teachings of Confucius, focusing on morality, familial duty, social harmony, and respect for hierarchy and tradition.

Daoism

An ancient Chinese philosophy and spiritual tradition emphasizing living in harmony with the Tao, or the fundamental nature of the universe.

Shi Huangdi

The founder of the Qin dynasty and the first emperor of a unified China, known for his major reforms and monumental construction projects like the Great Wall of China.

Emperor Huizong

A Chinese emperor of the Song dynasty, remembered for his patronage of the arts and his disastrous political and military decisions.