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:

Periodic Repayments

Regular payments made over time to settle a debt or loan, often consisting of both principal and interest components.

Profits

The financial gain obtained when the revenue from business activities exceeds the expenses, taxes, and costs of operation.

Insolvent

A financial state in which an individual or entity cannot meet its debt obligations as they come due, or its liabilities exceed its assets.

Debt Payment

The act of paying back the principal and interest on borrowed money, typically according to a predetermined schedule.