Which of the Following Statements Is False

question 16

Multiple Choice

Which of the following statements is false?

• A) Researchers use a proxy portfolio like the S&P/TSX Composite Index in Canada or the S&P 500 Index in the U.S. and assume that it will be highly correlated with the true market portfolio.
• B) Many mutual funds exist that follow both the momentum-based trading strategy and the market capitalization/book-to-market-based strategy.
• C) The true market portfolio should not consist of all traded investment wealth in the economy.
• D) If the true market portfolio is efficient but the proxy portfolio is not highly correlated with the true market, then the proxy will not be efficient and stocks will have nonzero alphas.

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Definitions:

Negative Symptoms

Symptoms of schizophrenia that seem to be deficits in normal thought, emotions, or behaviors.

Schizophrenia

A serious mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Antipsychotic Drugs

Medications used to treat psychotic symptoms such as delusions, hallucinations, and disordered thinking, commonly prescribed in psychiatric conditions.

Effective Treatment

A method or intervention that has been scientifically proven to produce significant positive outcomes in treating a specific condition or disease.