Which of the Following Statements Is False

question 167

Multiple Choice

Which of the following statements is false?

• A) Capital consists of produced goods that can be used as inputs for further production.
• B) The terms resources,inputs,and factors of production are synonyms.
• C) Labor consists of the physical,but not mental,talents of people who contribute to the production process.
• D) Entrepreneurship is one of the four categories of resources.
• E) The resource category land includes natural resources,such as minerals,forests,water,and unimproved land.

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Definitions:

Well-diversified Portfolio

A portfolio that includes a wide variety of investments across different asset classes in order to reduce risk.

Variance

A statistical measure of the dispersion of returns for a given security or market index, often used to gauge volatility.

Fairly Priced Securities

Securities that are priced accurately based on their inherent risk and expected return.

Alphas

The excess returns of an investment relative to the return of a benchmark index, indicating the added value by the portfolio manager.