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Which of the Following Statements Is FALSE

Question 50

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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