Which of the following statements is false regarding the portfolio selection problem?
A) The typical objective is to maximize the expected return on investment
B) The contraints only pertain to risk
C) Typical applications include banks, mutual funds, investment services, and insurance companies
D) The problem typically includes both greater-than-or-equal-to and less-than-or-equal-to constraints
E) The problem can also factor in legal requirements

Question

Quizplus · Accepted Answer

The statement that the constraints only pertain to risk is false. The portfolio selection problem may include constraints on the amount of available capital, the number of assets that can be invested in, and other factors.

Which of the Following Statements Is False Regarding the Portfolio