FALSE All rational investors would choose to receive $1000 today instead of $1100 in a year because money has a time value.
A theoretical human being who rationally calculates the costs and benefits of every action before making a decision, is used as the basis for a number of economic theories and models.
The core of Rational investing is a framework for smart investing built around three overall performance drivers: balancing exposure to risk factors, effectively diversifying bad luck, and taking advantage of relative mispricings in financial markets.
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