Which of the following statements is false?
A) Graphically, the efficient portfolios are those on the northeast edge of the set of possible portfolios, an area which we call the efficient frontier.
B) To arrive at the best possible set of risk and return opportunities, we should keep adding stocks until all investment opportunities are represented.
C) We say a portfolio is short for those stocks that have negative portfolio weights.
D) Adding new investment opportunities allows for greater diversification and improves the efficient frontier.

Question

Quizplus · Accepted Answer

A) Graphically, the efficient portfolios are those on the northwest edge of the set of possible portfolios, an area which we call the efficient frontier.

Which of the Following Statements Is False