Which of the following statements is FALSE?
A)Short-term margin loans from a broker are often 1% to 2% lower than the rates paid on short-term Treasury securities.
B)In the real world,investors have different information and expectations regarding securities.
C)The SML is still valid when interest rates differ.
D)When borrowing and lending occur at different rates there are different tangent portfolios identified.

Question

Quizplus · Accepted Answer

Short-term margin loans from a broker are typically more expensive than the rates paid on short-term Treasury securities, so statement A is false. The other statements are true.

Which of the Following Statements Is FALSE