Which of the Following Statements Is False

question 66

Multiple Choice

Which of the following statements is false?

• A) Short-term margin loans from a broker are often 1% to 2% lower than the rates paid on short-term Treasury securities.
• B) In the real world investors have different information and expectations regarding securities.
• C) The SML is still valid when interest rates differ.
• D) When borrowing and lending occur at different rates there are different tangent portfolios identified.

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Definitions:

Real World

Refers to the actual conditions and complexities of life outside of controlled or artificial environments, emphasizing practicality and real-life experiences.

Pigeons

In psychological research, pigeons have often been used as subjects in experiments to understand learning, memory, and decision-making processes.

Rats

Often used in psychology experiments as subjects for studying behavior, learning, and neurological processes.

Chimpanzees

A species of great ape known for its intelligence and complex social behaviors, often studied to gain insights into human evolution and behavior.