Which of the Following Statements Is FALSE

question 102

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 is 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 two portfolios must coincide.

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Definitions:

Herfindahl-Hirschman Index

A measure of market concentration that is used to determine the level of competition within an industry.

Dental Insurance

A form of health insurance designed to cover part of the costs associated with dental care.

Oligopolies

Market structures in which a few companies dominate the industry, limiting competition and potentially leading to higher prices for consumers.

Collusion

A secret or illegal cooperation between parties, typically to cheat or deceive others, often seen in contexts like business practices or trade.