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:

Method of Payment

This refers to the way in which a payment is made for a transaction, which can include cash, credit card, cheque, or electronic transfers.

Single Delivery

Refers to the process where all goods under a contract are delivered at once, rather than in separate instalments.

Installments

Payments made over time in parts or fractions towards settling a total debt or purchase price.

Commercial Impracticability

A doctrine under which a party may be released from a contract due to unforeseen and hardship-causing events that make the contract's performance infeasible.