Which of the Following Statements Is FALSE

question 8

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.

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Definitions:

Eclipse of the Sun

A celestial event that occurs when the moon passes between the Earth and the sun, blocking all or part of the sun's light from reaching the Earth.

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The belief or desire of a government or people that a country should maintain a strong military capability and be prepared to use it aggressively to defend or promote national interests.

George Grosz

A German artist known for his caricatural drawings and paintings of Berlin life in the 1920s.

Modern Humans

Homo sapiens, the species to which all living human beings belong, characterized by a more developed brain and the capacity for language, abstract thought, and culture.