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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Definitions:

Medically abnormal

A condition or state that deviates from what is considered healthy or normal in medical practice.

Maladaptive

Refers to actions or behaviors that inhibit an individual's ability to adjust healthily to particular situations.

Deviant

Behaving or thought patterns that differ significantly from the norm or societal expectations, often carrying a negative connotation.

Stress response

The body's reaction to a challenge or demand, often initiating physiological and psychological adjustments.