Which of the Following Statements Is FALSE

question 39

Multiple Choice

Which of the following statements is FALSE?

• A)A conclusion of the CAPM that investors should hold the market portfolio only if they have high quality information.
• B)A conclusion of the CAPM that investors should hold the market portfolio even if they do not have high trading skills.
• C)Even naive investors with no information should hold the market portfolio.
• D)The CAPM assumption of homogeneous expectations is not necessarily a good description of the real world.

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Definitions:

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Homosexual

An individual who is romantically or sexually attracted to people of their own sex.

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Parents who identify as heterosexual, meaning they are attracted to members of the opposite sex.

Biopsychosocial Interactive Model

A holistic approach to understanding human health and illness, emphasizing the interconnection between biological, psychological, and social factors.