Which of the Following Statements Is FALSE

question 39

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:

Photograph Cover

The front image or picture on a magazine, book, or album designed to represent its contents or appeal to consumers.

Chi-square Statistic

A statistic that measures the difference between observed frequencies in a sample and the frequencies that would be expected by chance.

Null Hypothesis

A statement that there is no effect or no difference, and it is the statement being tested in statistical hypothesis testing.

Economic Concerns

Issues related to the health and functioning of an economy, including inflation, unemployment, and GDP growth.