Which of the Following Statements Is FALSE

question 9

Multiple Choice

Which of the following statements is FALSE?

• A)Nonzero alphas may merely indicate that the wrong market proxy is beings used;they do not necessarily indicate forgone positive NPV investment opportunities.
• B)The true market portfolio contains much more than just stocks,it includes bonds,real estate,art,precious metals,and any other investment vehicles available.
• C)If the true market portfolio is efficient,but the proxy portfolio is not highly correlated with the true market portfolio,then the true market portfolio will not be efficient and stocks will have nonzero alphas.
• D)Much of the investment wealth cannot be included in the proxy for the market portfolio since it does not trade in competitive markets.

---

Definitions:

Publicly Filed Documents

Documents that are officially recorded and available to the public, often found in government or judicial systems.

Primary Source

Original documents, evidence, or records used in research, offering direct or firsthand evidence about an event, object, person, or work of art.

SEC

The Securities and Exchange Commission (SEC) is a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other related activities.

Well-Recognized Blogs

Blogs that are widely known and respected for their content in a certain field or subject area.