Which of the Following Statements Is FALSE

question 42

Multiple Choice

Which of the following statements is FALSE?

• A)A portfolio 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 going short other stocks with equal market value.

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Definitions:

Defender Strategy

A business approach focusing on defending existing market positions and focusing on product or service quality and reliability to retain customers.

Existing Products

Items or goods that have been created and are currently available in the market.

Current Market Share

The portion or percentage of total sales in a market captured by a company or product at a specific point in time, indicating competitiveness.

Failures of Process

Incidents or occasions where a procedure or system does not perform its intended function or fails to produce the desired outcome.