Which of the Following Statements Is FALSE

question 84

Multiple Choice

Which of the following statements is FALSE?

• A)Because all investors should hold the risky securities in the same proportions as the efficient portfolio,their combined portfolio will also reflect the same proportions as the efficient portfolio.
• B)When the CAPM assumptions hold,choosing an optimal portfolio is relatively straightforward: it is the combination of the risk-free investment and the market portfolio.
• C)Graphically,when the tangent line goes through the market portfolio,it is called the security market line (SML).
• D)A portfolio's risk premium and volatility are determined by the fraction that is invested in the market.

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Definitions:

Social Environment

The immediate physical and social setting in which people live or in which something happens or develops, including the culture, institutions, and people surrounding an individual.

Family System Structure

The organization of relationships, roles, and interactions within a family unit.

Depth

The complexity or intensity of a situation, idea, or characteristic, indicating a profound level of understanding or detail.

Nature

The phenomena of the physical world collectively, including plants, animals, landscapes, and other features and products of the earth, as opposed to humans or human creations.