Which of the Below Statements Is FALSE

question 46

Multiple Choice

Which of the below statements is FALSE?

• A) In practice, capitalization weighting continues to be the dominant practice, but fundamentally weighted mutual funds and ETFs have been introduced.
• B) Fundamentally weighted portfolios do not necessarily clear the market and require rebalancing as stock price change.
• C) Indexing is an example of an active strategy.
• D) According to modern portfolio theory, the market portfolio offers the highest level of return per unit of risk in a market that is price efficient.

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Definitions:

Dissent

The expression or holding of opinions that are at variance with those previously, commonly, or officially held.

Executive Order 9066

An order signed by President Franklin D. Roosevelt during World War II that authorized the internment of tens of thousands of American citizens of Japanese ancestry and resident aliens from Japan.

Asian-American Experience

Encompasses the history, culture, and social issues of Americans of Asian descent, highlighting themes such as immigration, identity, racism, and contributions to American society.

Chinese Immigration

The movement of individuals from China to other countries, historically significant in the 19th and early 20th centuries, often for work in mining, railroads, and as laborers facing both opportunity and discrimination.