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johnpaech johnpaech
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Posts: 1098
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6 years ago
Which of the following statements is FALSE?
A) Margin investing is a risky investment strategy.
B) Because our return on the risk-free investments is fixed and does not move with (or against) our portfolio, the correlation between the risk-free investment and the portfolio is always equal to one.
C) Short selling the risk free investment is equivalent to borrowing money at the risk-free interest rate through a standard loan.
D) Margin investing can provide higher expected returns than investing in the efficient portfolio using only the funds we have available.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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EgorGruzdevEgorGruzdev
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6 years ago
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johnpaech Author
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6 years ago
Correct Slight Smile TY
decibul
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Yesterday
Brilliant ツ
2ne1_12345
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2 hours ago
Smart ... Thanks!
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