Which of the following statements is? FALSE? A. When an investor chooses her optimal? portfolio, she...

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Finance

Which of the following statements is? FALSE?
A. When an investor chooses her optimal? portfolio, she will doso by finding the tangent line using the risk-free rate thatcorresponds to her investment horizon.
B. Even though different investors may research different?stocks, their information will not impact the market portfoliosince there is no way to share this information with otherinvestors.
C. In the real? world, borrowers pay higher interest rates thansavers receive.
D. If the market portfolio is not? efficient, savvy investorswho recognize that the market portfolio is not optimal will pushprices and expected returns back into balance.

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Answer Even though different investors may research different stocks their information will not impact the market portfolio since there is no way to share this information with other investors Reason Market portfolio means a See Answer

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Which of the following statements is? FALSE?A. When an investor chooses her optimal? portfolio, she will doso by finding the tangent line using the risk-free rate thatcorresponds to her investment horizon.B. Even though different investors may research different?stocks, their information will not impact the market portfoliosince there is no way to share this information with otherinvestors.C. In the real? world, borrowers pay higher interest rates thansavers receive.D. If the market portfolio is not? efficient, savvy investorswho recognize that the market portfolio is not optimal will pushprices and expected returns back into balance.