Which of the Following Statements Is FALSE

question 37

Multiple Choice

Which of the following statements is FALSE?

• A)We can rule out inefficient portfolios because they represent inferior investment choices.
• B)Correlation has no effect on the expected return on a portfolio.
• C)The volatility of the portfolio will differ, depending on the correlation between the securities in the portfolio.
• D)We say a portfolio is an efficient portfolio whenever it is possible to find another portfolio that is better
• In terms of both expected return and volatility.

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