Which of the Following Statements Is FALSE

question 40

Multiple Choice

Which of the following statements is FALSE?

• A)Graphically,the efficient portfolios are those on the northeast edge of the set of possible portfolios,an area which we call the efficient frontier.
• B)To arrive at the best possible set of risk and return opportunities,we should keep adding stocks until all investment opportunities are represented.
• C)We say a portfolio is short those stocks that have negative portfolio weights.
• D)Adding new investment opportunities allows for greater diversification and improves the efficient frontier.

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Definitions:

Last Clear Chance

A legal doctrine allowing a plaintiff to recover damages even if they were partly at fault, if the defendant had the last opportunity to avoid the accident.

Voluntarily Assumed Risk

A legal principle where an individual knowingly exposes themselves to a known danger or risk.

Negligent

Negligence is the failure to exercise appropriate and ethical care expected to be exercised amongst specified circumstances, leading to unintended harm or damage.

High Beam

The brighter, focused setting of a vehicle's headlights designed to illuminate long distances, used when no oncoming traffic is present.