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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Definitions:

Gross National Income

A measure that encompasses the total domestic and foreign output claimed by residents of a country, including wages, product sales, and property income.

Development Level

Represents the economic and social progress of countries or regions, often measured by factors such as income, education, and healthcare.

Average Education

A statistical measure that represents the mean level of educational attainment within a specific population or group.

Chronic Malnutrition

A long-term nutritional deficiency that results in stunted growth, weakened immunity, and impaired brain development, often due to poor diet and repeated infections.