Which of the Following Statements Is False

question 44

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:

Sample

A group or set collected from a larger population for the purpose of statistical analysis, representing the larger group.

Hypothesis Testing

A statistical method that uses sample data to evaluate a hypothesis about a population parameter.

Statistical Analyses

The process of applying statistical methods to data in order to summarize, describe, and infer properties of the underlying distribution.