Which of the Following Statements Is False

question 64

Multiple Choice

Which of the following statements is false?

• A) A portfolio that consists of a long position in the risk-free investment is known as a levered portfolio.
• B) The optimal portfolio will not depend on the investor's personal tradeoff between risk and return.
• C) The volatility of the risk-free investment is zero.
• D) Our total volatility is only a fraction of the volatility of the efficient portfolio, based on the amount we invest in the risk free asset.

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Definitions:

Limited Rights

Rights that are restricted by terms or extent, often used in the context of intellectual property or contractual agreements.

Limited Partnership

A business arrangement where at least one partner is a general partner who takes on unlimited liability, while others are limited partners whose liability is restricted to their investment in the partnership.

Federal Law

Laws that have been enacted by the national government of a country and which apply to the entire nation, superseding local or state laws where conflicts occur.

International Commerce

Refers to the exchange of goods, services, and capital across international borders or territories.