Which of the Following Statements Is False

question 25

Multiple Choice

Which of the following statements is false?

• A) We say a portfolio is long for those stocks that have negative portfolio weights.
• B) The efficient portfolios are those portfolios offering the highest possible expected return for a given level of volatility.
• C) When two stocks are perfectly negatively correlated, it becomes possible to hold a portfolio that bears absolutely no risk.
• D) The lower the correlation of the securities in a portfolio, the lower the volatility we can obtain.

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Definitions:

Replacement

The process of substituting one thing for another, or the act of being substituted.

Necrosis

Necrosis is the death of cells or tissues in a living organism due to factors such as injury, infection, or toxins, leading to cell degradation.

Areolar Tissue

A loose connective tissue that provides a supportive and flexible matrix for many organs and structures in the body.

Adipose Tissue

Adipose tissue is a type of connective tissue that stores fat, providing insulation, protection, and energy reserves to the body.