Which of the Following Statements Is FALSE

question 127

Multiple Choice

Which of the following statements is FALSE?

• A)A portfolio is efficient if it has the highest possible Sharpe ratio; that is it is efficient if it provides the largest increase in expected return possible for a given increase in volatility.
• B)The required return for an investment is equal to a risk premium that is equal to the risk premium of the investor's current portfolio scaled by .
• C)Increasing the investment in investment I will increase the Sharpe ratio of portfolio P if its expected return E[R_i] exceeds the required return r_i, which is given by r_i = r_f + × (E[R_p] - r_f).
• D)If a security i's expected return is less than the required return r_i, we should reduce our holding of security i.

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Definitions:

Liberal Democracies

Political systems characterized by free and fair elections, rule of law, protection of rights and freedoms, and the separation of powers.

Youth

The period of development from childhood to adulthood, often focusing on teenagers and young adults, and characterized by physical, psychological, and social changes.

Colonial War

A colonial war refers to a conflict between a colonial power and a native population, or between two colonial powers, typically over control of territories or resources.

Imperial Power

A nation or state that possesses great authority and control over other nations or territories, often through conquest or colonization.