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:

Dysfunctional

Not operating normally or effectively, often referring to behaviors, relationships, or mechanisms.

Conflicting Views

refers to differing opinions, perspectives, or interpretations between individuals or groups that can lead to disagreement or debate.

Values and Beliefs

Fundamental convictions or principles that guide behavior and help individuals distinguish between right and wrong.

Constructive Conflict

A situation where disagreement leads to productive discussions, resulting in solutions that benefit all parties involved.