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:

Cost of Merchandise Sold

The total cost of goods that have been sold during a specific period, including purchase price, transportation, and handling charges, less any discounts or allowances.

Cash Payment

The act of settling a debt or paying for goods or services with cash or equivalent instruments, such as checks.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from operating activities is used instead of adjustments to net income.

Revenues

income that a business receives from its normal business activities, usually from the sale of goods and services to customers.