Which one of the statements is false?

A liquidity shortage means that there are not enough willing buyers in the market and the seller must lower the price of the instrument for a willing buyer to emerge.

A risk profile consists of the ability to take risks and the attitude towards risk.

The relationship between risk and return is positive.

Government treasury bills or bonds are usually used as a risk-free proxy.

Conservative investors should have a lower allocation to cash than aggressive investors.

The statement "Conservative investors should have a lower allocation to cash than aggressive investors" is false. Conservative investors generally have a higher allocation to cash compared to aggressive investors, as they prioritize capital preservation and are more risk-averse.