Which of the Following Statements Is False

question 50

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:

Individualist Culture

Cultures that emphasize personal achievements and independence, valuing individual rights above those of the group.

Hofstede

A researcher known for his studies on how culture influences values in the workplace and in societies at large.

Rank-Order

A method of arranging data or participants based on their score or position relative to one another.

Individualistic

Emphasizing the moral worth of the individual and favoring freedom of action for individuals over collective or state control.