Which of the following statements is FALSE?
A)An investor's preferences will determine only how much to invest in the tangent or efficient portfolio versus the risk-free investment.
B)Conservative investors will invest a small amount in the tangent or efficient portfolio,choosing a portfolio on the line near the risk-free investment.
C)Only aggressive investors will choose to hold the portfolio of risky assets,the tangent or efficient portfolio.
D)Aggressive investors will invest more in the tangent portfolio choosing a portfolio that is near the tangent portfolio or even beyond it by buying stocks on margin.

Question

Quizplus · Accepted Answer

Conservative investors may also choose to hold the tangent or efficient portfolio but will allocate a smaller portion of their total investment to it, balancing with risk-free assets.

Which of the Following Statements Is FALSE