Which of the Following Statements Is FALSE

question 65

Multiple Choice

Which of the following statements is FALSE?

• A)If the CAPM correctly computes the risk premium,investors would stop investing only when they expected the alpha of an investment strategy to be negative.
• B)If the CAPM correctly computes the risk premium,an investment opportunity with a positive alpha is a positive NPV investment opportunity.
• C)If the CAPM correctly computes the risk premium,investors should flock to invest in positive alpha stocks.
• D)Anyone can implement a momentum trading strategy and therefore generate a positive investment opportunity.

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Definitions:

Hepatitis A

A highly contagious liver infection caused by the hepatitis A virus, primarily spread by the ingestion of contaminated food or water.

Obstructive Jaundice

A condition characterized by the yellowing of skin and eyes due to a blockage in the bile ducts, which prevents bile (containing broken down red blood cells) from being processed and eliminated properly.

Cirrhosis

Chronic, irreversible injury to liver tissue; commonly caused by frequent alcohol consumption.

Acute Diarrhea

A condition characterized by the abrupt onset of frequent, loose, water stools that lasts less than 14 days, often due to infection or toxin ingestion.