Which of the Following Statements Is False

question 6

Multiple Choice

Which of the following statements is false?

• A) When an investor chooses her optimal portfolio, she will do so by finding the tangent line using the risk-free rate that corresponds to her investment horizon.
• B) If the market portfolio is not efficient, savvy investors who recognize that the market portfolio is not optimal will push prices and expected returns back into balance.
• C) Even though different investors may research different stocks, their information will not impact the market portfolio since there is no way to share this information with other investors.
• D) In the real world borrowers pay higher interest rates than savers receive.

---

Definitions:

Stratification

The hierarchical arrangement of individuals or groups in a society based on factors like wealth, power, and social status, leading to inequality in opportunities and rewards.

Social Hierarchy

A system of ranking individuals or groups in a society based on various factors such as wealth, power, or prestige.

Forbes’s Asia

A business magazine franchise focusing on Asia, offering analysis and insights related to business, finance, economics, and investment in the Asian region.

Social Stratification

The hierarchical arrangement of individuals in a society based on wealth, power, and social status.