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Which One of the Following Is NOT True

Question 7

Multiple Choice

Which one of the following is NOT true?


A) The separation theorem states that the borrowing decision and investment decision are separate.
B) Investors should look at investments in terms of their prospective return, not their cost
C) The separation theorem states that you cannot separate your risk-free and stock investments.
D) The market portfolio is the tangent line that goes through the risk-free rate.

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