单选题 Which of the following statements about investment constraints is FALSE? A. Diversification efforts can increase tax liability. B. Investors concerned about time horizon are not likely to worry about liquidity. C. Tax deferral usually makes more sense for the young than for the old.

【正确答案】 B

【答案解析】Investors with a time horizon constraint may have little time for capital appreciation before they need the money. Need for money in the near term is a liquidity constraint. Time horizon and liquidity constraints often go hand in hand. Limiting the options of an investment adviser is a constraint on the investment policy.