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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Members of the Democratic Party who serve in the United States Congress, consisting of the House of Representatives and the Senate.

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