Final answer:
The false statements about liquidity are that more liquid investments yield higher returns and less liquid investments yield lower returns. In reality, more liquid investments tend to have lower returns due to lower risks, while less liquid investments usually offer higher returns to offset their higher risks and lower liquidity.
Step-by-step explanation:
The question pertains to the relationship between liquidity and return on investments. When addressing the falseness of statements regarding liquidity, it is essential to understand the general tradeoffs between return, risk, and liquidity of an investment. The common understanding is that the more liquid an investment is, the easier it can be converted into cash without affecting its price. However, more liquid investments typically offer lower returns because they pose less risk to investors. Less liquid investments often offer higher returns to compensate for their greater risk and the potential difficulty of converting the investment into cash quickly.
Given this, the correct statement is 'The more liquid an investment, the less return,' which means that the false statements from the options provided are 'The more liquid an investment, the more return,' and 'The less liquid the investment, the less return.' Consequently, option A ('The more liquid an investment, the more return') and option B ('The less liquid the investment, the less return') are both false, which makes the correct answer 'Both A and B.'