Which of the Following Statements Is FALSE

question 125

Multiple Choice

Which of the following statements is FALSE?

• A)A portfolio that consists of a long position in the risk-free investment is known as a levered portfolio.
• B)The optimal portfolio will not depend on the investor's personal tradeoff between risk and return.
• C)The volatility of the risk-free investment is zero.
• D)Our total volatility is only a fraction of the volatility of the efficient portfolio,based on the amount we invest in the risk-free asset.

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Definitions:

Potassium

A chemical element with symbol K, essential for the functioning of all living cells, and a major component in plant nutrition.

Magnesium

A chemical element with the symbol Mg, known for its lightweight and structural applications and vital roles in biological systems.

Mathematics

The abstract science of number, quantity, and space, either as abstract concepts (pure mathematics) or as applied to other disciplines such as physics and engineering (applied mathematics).

Everyone

Every person; all people collectively.