Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A) A combination of portfolios on the efficient frontier of risky investments is also on the efficient frontier of risky investments.
• B) The conclusion of the CAPM that investors should hold the market portfolio combined with the risk-free investment depends on the quality of an investor's information.
• C) The SML holds with some rate r* between r_s and r_b in place of r_f, where r* depends on the proportion of savers and borrowers in the economy.
• D) In reality, investors have different information and spend varying amounts of effort on research for assorted stocks.

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Definitions:

Preschooler

A child typically between the ages of 3 and 5 years who is attending or preparing to attend preschool.

Friend

A person with whom one has a bond of mutual affection, typically exclusive of sexual or family relations.

Later-born Children

Later-born children are those born after the first child in a family, who may experience different parenting styles and family dynamics than their older siblings.

First-born Children

Often referred to as the eldest child in a family, who may experience different parental expectations and develop unique psychological traits compared to their siblings.