Which of the Following Statements Is False

question 22

Multiple Choice

Which of the following statements is false?

• A) If investors have homogeneous expectations, then each investor will identify the same portfolio as having the highest Sharpe ratio in the economy.
• B) Homogeneous expectations are when all investors have the same estimates concerning future investments and returns.
• C) There are many investors in the world, and each must have identical estimates of the volatilities, correlations, and expected returns of the available securities.
• D) The combined portfolio of risky securities of all investors must equal the efficient portfolio.

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