Which of the following statements is FALSE?
A)We say a portfolio is long those stocks that have negative portfolio weights.
B)The efficient portfolios are those portfolios offering the highest possible expected return for a given level of volatility.
C)When two stocks are perfectly negatively correlated,it becomes possible to hold a portfolio that bears absolutely no risk.
D)The lower the correlation of the securities in a portfolio the lower the volatility we can obtain.

Question

Quizplus · Accepted Answer

The statement "We say a portfolio is long those stocks that have negative portfolio weights" is false. In finance, a long position refers to owning an asset. A portfolio is considered long when it is invested in a group of assets that are expected to increase in value over time. Portfolio weights can be negative, indicating short positions, but this does not make the portfolio "long."

Which of the Following Statements Is FALSE