Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)It is not actually necessary to identify the efficient portfolio itself.All that is required is to identify a collection of portfolios from which the efficient portfolio can be constructed.
• B)Although we might not be able to identify the efficient portfolio itself,we know some characteristics of the efficient portfolio.
• C)An efficient portfolio can be constructed from other diversified portfolios.
• D)An efficient portfolio need not be well diversified.

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Definitions:

Current Liabilities

Financial obligations of a business that are due and payable within one year, including accounts payable, short-term debt, and other short-term obligations.

Quick Ratio

The quick ratio, or acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.

Current Ratio

A financial metric used to evaluate a company's ability to pay short-term obligations, calculated by dividing current assets by current liabilities.

Fixed Asset Turnover

A financial ratio that measures how efficiently a company is using its fixed assets to generate sales.