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:

Checking Compulsion

A form of obsessive-compulsive disorder characterized by the need to check things repeatedly, such as locks or appliances, driven by fear and anxiety.

Counting Compulsion

An obsessive-compulsive behavior that involves an uncontrollable urge to count objects or actions.

Cleaning Compulsion

An obsessive need to clean or organize, often as a symptom of obsessive-compulsive disorder, where the action is driven by an attempt to reduce distress or anxiety.

Cognitive-Behavioral Theorist

A professional specializing in the study and application of cognitive-behavioral therapy, emphasizing the role of thinking and behavior in the development and treatment of psychological disorders.