Which of the Following Statements Is FALSE

question 39

Multiple Choice

Which of the following statements is FALSE?

• A)The most important example of non-tradeable wealth is human capital.
• B)If investors have a significant amount of non-tradeable wealth,this wealth will be an important part of their portfolios,but will not be part of the market portfolio of tradeable securities.
• C)If the entire portfolio of investments is efficient,then just the tradeable part of the portfolio should be efficient also.
• D)Researchers have found evidence that the presence of human capital can explain at least part of the reason for the inefficiency of the most commonly used market proxies.

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Definitions:

Birth Rates

The number of live births per thousand of population per year, a crucial demographic indicator affecting a nation's population growth.

White Settlers

Individuals of European descent who established communities in territories outside of Europe, often leading to the displacement of indigenous populations.

Middle Passage

The sea voyage that transported enslaved Africans across the Atlantic Ocean to the Americas as part of the triangular slave trade, noted for its brutal conditions.

Enslaved Africans

Individuals from Africa who were forcibly taken from their homeland, sold into bondage, and subjected to slavery, primarily in the Americas and the Caribbean.