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Corporate Finance · Quiz 2 · 1 Dec 2024 · September 2024 term

Corporate Finance Quiz 2 1 Dec 2024 — Question 9

Question 9

+1 markOne correct option

Which of the following statements is incorrect?

  1. A

    The minimum variance set is a subset of the feasible set.

  2. B

    The minimum variance set is the left boundary of a feasible set.

  3. C

    Risk-averse investors always choose the global minimum variance portfolio as their optimal portfolio.

  4. D

    The efficient frontier is a subset of the minimum variance set.

Show answer

Correct answer

  • C

    Risk-averse investors always choose the global minimum variance portfolio as their optimal portfolio.

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Question 9 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 1 Dec 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB2 01 Dec 2024). It carries 1 mark.

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