Which of the Following Statements Is False

question 2

Multiple Choice

Which of the following statements is false?

• A) The tangent portfolio is efficient and, once we include the risk-free investment, all efficient portfolios are combinations of the risk-free investment and the tangent portfolio.
• B) The optimal portfolio of risky investments depends on how conservative or aggressive the investor is.
• C) By combining the efficient portfolio with the risk-free investment, an investor will earn the highest possible expected return for any level of volatility her or she is willing to bear.
• D) The efficient portfolio is the tangent portfolio, the portfolio with the highest Sharpe ratio in the economy.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machines, systems, and devices.

Gross Profit

The financial gain made after deducting the costs of goods sold from total sales revenue.

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The use of digital tools and software to organize, schedule, and manage appointments, meetings, and events.

CRM System

Customer Relationship Management system; a technology for managing all your company's relationships and interactions with customers and potential customers.