Which of the following statements is FALSE?
A) We can rule out inefficient portfolios because they represent inferior investment choices.
B) Correlation has no effect on the expected return on a portfolio.
C) The volatility of the portfolio will differ, depending on the correlation between the securities in the portfolio.
D) We say a portfolio is an efficient portfolio whenever it is possible to find another portfolio that is better
In terms of both expected return and volatility.
Correct Answer:
Verified
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