Which of the Following Statements Is False

question 51

Multiple Choice

Which of the following statements is false?

• A) Graphically, the efficient portfolios are those on the northeast edge of the set of possible portfolios, an area which we call the efficient frontier.
• B) To arrive at the best possible set of risk and return opportunities, we should keep adding stocks until all investment opportunities are represented.
• C) We say a portfolio is short for those stocks that have negative portfolio weights.
• D) Adding new investment opportunities allows for greater diversification and improves the efficient frontier.

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Dominant Strategy

A strategy in game theory that yields the best outcome for a player, no matter what the opponents choose to do.

Credibility

The quality of being trusted and believed in, often a crucial factor for individuals, organizations, and information sources.

Dominant Strategy

A strategy in game theory that is best for a player to follow regardless of the strategies chosen by other players in the game.