Which of the Following Statements Is FALSE

question 31

Multiple Choice

Which of the following statements is FALSE?

• A)A portfolio that costs nothing to construct is called a self-financing portfolio.
• B)The most obvious portfolio to use in a multifactor model is the market portfolio itself.
• C)In general,a self-financing portfolio is any portfolio with portfolio weights that sum to one rather than zero.
• D)We can construct a self-financing portfolio by going long some stocks and shorting other stocks with equal market value.

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Definitions:

Correspondent Inference

A theory in social psychology that explains how people infer others' personal characteristics from their behavior, assuming it corresponds to their personality.

Business Meeting

A gathering of individuals within an organization to discuss and make decisions on business-related matters.

Social Gathering

A social gathering is an event where people come together to interact, engage, or celebrate, often for communal or celebratory purposes.

Grocery Store

A retail store that sells food and household goods, serving as a convenient place for consumers to purchase their daily necessities.