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.

---

Definitions:

Self-Caregiving Pattern

Personal behaviors and practices that individuals follow to maintain health and well-being, involving activities of daily living and self-management of illnesses.

Standby Role

A supportive presence provided by an individual, often to offer assistance or intervention if necessary, while allowing the primary person to perform a task independently.

Share Activities

Engaging in tasks or recreational events with others to foster social connections or teamwork.

Family Caregiving Pattern

The characteristic ways in which family members provide physical, emotional, and financial care to their relatives who need support due to illness, disability, or aging.