Which of the Following Statements Is FALSE

question 93

Multiple Choice

Which of the following statements is FALSE?

• A) Since the publication of their original paper, Modigliani and Miller's ideas have greatly influenced finance research and practice.
• B) Proposition I was one of the first arguments to show that the Law of One Price could have strong implications for security prices and firm values in a competitive market; it marks the beginning of the modern theory of corporate finance.
• C) The conservation of value principle extends far beyond questions of debt versus equity or even capital structure.
• D) The conservation of value principle for financial markets states that with perfect capital markets, financial transactions neither add nor destroy value, but instead represent a repackaging of risk (and therefore return).

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Definitions:

Motivated

Being motivated refers to having a drive or desire to act or accomplish something, often stemming from personal goals, needs, or incentives.

Observational Learning

Acquiring knowledge by watching others' actions and the results of those actions.

Reinforced

Strengthened or encouraged to occur again in the future, typically through a reward or positive outcome following a specific behavior.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.