Which of the Following Statements Is False

question 103

Multiple Choice

Which of the following statements is false?

• A) If some security were not part of the efficient portfolio, then every investor would want to own it, and demand for this security would increase, causing its expected return to fall until it was no longer an attractive investment.
• B) The efficient portfolio, the portfolio that all investors should hold, must be the same portfolio as the market portfolio of all risky securities.
• C) Because every security is owned by someone, the sum of all investors' portfolios must equal the portfolio of all risky securities available in the market.
• D) If all investors demand the efficient portfolio, and since the supply of securities is the market portfolio, then the two portfolios must coincide.

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Definitions:

Iranian Nuclear Deal

An agreement reached in 2015 between Iran and major world powers aimed at limiting Iran's nuclear program in exchange for lifting economic sanctions.

Foreign Policy Actions

Measures taken by a nation in its dealings with other countries, encompassing a wide range of activities including diplomacy, sanctions, and military engagement.

Economic Aid

Financial assistance provided by countries or international organizations to support the economic development and welfare of other nations.

Diplomacy

The professional, skilled conduct of negotiations and managing relationships between governments of different countries by diplomats and political leaders.