Which of the Following Statements Is FALSE

question 84

Multiple Choice

Which of the following statements is FALSE?

• A)Because all investors should hold the risky securities in the same proportions as the efficient portfolio,their combined portfolio will also reflect the same proportions as the efficient portfolio.
• B)When the CAPM assumptions hold,choosing an optimal portfolio is relatively straightforward: it is the combination of the risk-free investment and the market portfolio.
• C)Graphically,when the tangent line goes through the market portfolio,it is called the security market line (SML).
• D)A portfolio's risk premium and volatility are determined by the fraction that is invested in the market.

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Definitions:

Rewarding Stimulus

An object, event, or condition that is desired by an individual or organism, often resulting in positive reinforcement of a behavior.

Strengthened

Made stronger or reinforced in power, value, or intensity.

Positive Reinforcers

Stimuli that, when presented after a behavior, increase the likelihood of that behavior being repeated in the future.

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Edible rewards used for training, rewarding, or spoiling dogs, often made to support canine health, dental hygiene, or dietary needs.