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:

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A psychological defense mechanism where an individual refuses to accept reality or facts, leading to adverse outcomes or inability to deal with situations.

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A psychological disorder identified by powerful feelings of unease, worry, or terror that substantially hinder daily life activities.

Mental Health Referral

The process of directing a patient to appropriate psychiatric or psychological services for further evaluation and treatment.