Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)If investors have homogeneous expectations,then each investor will identify the same portfolio as having the highest Sharpe ratio in the economy.
• B)Homogeneous expectations are when all investors have the same estimates concerning future investments and returns.
• C)There are many investors in the world,and each must have identical estimates of the volatilities,correlations,and expected returns of the available securities.
• D)The combined portfolio of risky securities of all investors must equal the efficient portfolio.

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Definitions:

Glycerol

A simple polyol compound with three hydroxyl groups, commonly used in pharmaceutical and food industries, as well as in the manufacture of dynamite.

β-D-Ribopyranose

A sugar molecule that is a form of ribose having a six-membered oxygen-containing ring, in the β-anomeric form.

Haworth Structure

A method for depicting cyclic sugars as planar rings with hydroxyl groups and other substituents positioned above or below the plane.

α-Furanose

A form of sugar where a furan ring, a five-membered oxygen-containing ring, is present in the α-configuration, relating to the position of the substituent at the anomeric carbon.