Which of the Following Statements Is False

question 45

Multiple Choice

Which of the following statements is false?

• A) A significant fraction of investors might care about aspects of their portfolios other than expected return and volatility, and so would be unwilling to hold inefficient investment portfolios.
• B) Although the true market portfolio of all invested wealth might be efficient, the proxy portfolio might not track the actual market very well.
• C) We might be using the wrong proxy portfolio when we calculate alphas.
• D) The true market portfolio consists of all traded investment wealth in the economy.

---

Definitions:

Termination Of Employment

The end of an employee's duration with an employer, which can be voluntary or involuntary.

Notice

A formal communication or warning given in writing or verbally about something.

Restrictive Covenants

Clauses in contracts that limit the actions of parties, often related to employment, real estate, and business operations to protect interests.

Original Employment Contract

The initial agreement defining terms and conditions between an employer and employee at the start of employment.