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:

Stimulus Predictability

The extent to which the occurrence and properties of a stimulus can be anticipated based on previous experience.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Sexually Arousing

Refers to stimuli or aspects that induce sexual excitement or desire in an individual.

Appropriate US

An unconditioned stimulus that naturally induces an unconditioned response without the need for prior learning or conditioning.