Which of the Following Statements Is False

question 79

Multiple Choice

Which of the following statements is false?

• A) If we increase the fraction invested in the efficient portfolio beyond 100% we are short selling the risk-free investment.
• B) As we increase the fraction invested in the efficient portfolio, we increase our risk premium, but not our risk, proportionately.
• C) To earn the highest possible expected return for any level of volatility we must find the portfolio that generates the steepest possible line when combined with the risk-free investment.
• D) Every investor should invest in the tangent portfolio independent of his or her taste for risk.

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Concern for the health, happiness, and well-being of other individuals.

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A company specializing in the collection and disposal of garbage and recyclables.

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The condition of holding oneself in high regard, reflecting a person’s overall subjective emotional evaluation of their own worth.

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A personality trait concept reflecting an individual’s subconscious, fundamental evaluations about themselves, their abilities and their control over their environment.