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:

Echolalia

Echolalia is the automatic repetition of vocalizations made by another person, often seen in developmental disorders like autism.

Stammering

A speech disorder characterized by involuntary repetitions and prolongations of sounds, syllables, or words.

Lisp

A speech impediment that affects the pronunciation of sibilants, causing them to be pronounced with a "th" sound.

Magical Thinking

The belief that one's thoughts, wishes, or desires can influence the physical world; common in children and certain psychiatric conditions.