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Which of the Below Statements Is FALSE

Question 28

Multiple Choice

Which of the below statements is FALSE?


A) In practice, capitalization weighting continues to be the dominant practice, but fundamentally weighted mutual funds and ETFs have been introduced.
B) Fundamentally weighted portfolios do not necessarily clear the market and require rebalancing as stock price change.
C) Indexing is an example of an active strategy.
D) According to modern portfolio theory, the market portfolio offers the highest level of return per unit of risk in a market that is price efficient.

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