Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)Margin investing is a risky investment strategy.
• B)Because our return on the risk-free investments is fixed and does not move with (or against)our portfolio,the correlation between the risk-free investment and the portfolio is always equal to one.
• C)Short selling the risk-free investment is equivalent to borrowing money at the risk-free interest rate through a standard loan.
• D)Margin investing can provide higher expected returns than investing in the efficient portfolio using only the funds we have available.

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Definitions:

Bundle Of His

A collection of heart muscle cells specialized for electrical conduction that transmits electrical impulses from the atrioventricular node to the ventricles of the heart.

AV Bundle

The atrioventricular bundle, or Bundle of His, is a collection of heart muscle cells specialized for electrical conduction that transmits the electrical impulses from the AV node to the point of the apex of the fascicular branches.

Bicuspid Valve

The heart valve located between the left atrium and left ventricle that controls blood flow and consists of two flaps; also known as the mitral valve.

Mitral Valve

A valve in the heart located between the left atrium and the left ventricle that regulates blood flow through the left side of the heart.