Which of the Following Statements Is FALSE

question 75

Multiple Choice

Which of the following statements is FALSE?

• A)Because expected returns are not easy to estimate,each portfolio that is added to a multifactor model increases the difficulty of implementing the model.
• B)The self-financing portfolio made from high minus low book-to-market stocks is called the high-minus-low (HML)portfolio.
• C)The Fama-French-Carhart (FFC)factor specification was identified a little more than ten years ago.Although it is widely used in academic literature to measure risk,much debate persists about whether it really is a significant improvement over the CAPM.
• D)A trading strategy that each year short sells portfolio S (small stocks)and uses this position to buy portfolio B (big stocks)has produced positive risk-adjusted returns historically.This self-financing portfolio is widely known as the small-minus-big (SMB)portfolio.

Differentiate between effective and efficient communication.

Recognize the significance of credibility, trust, and respect in effective communication.

Identify factors that interfere with the effectiveness of the communication process.

Understand the importance of channel richness in communication and its capacity to carry information.

---

Definitions:

FOB Shipping Point

A term indicating that the buyer takes responsibility for goods and their transportation costs once they leave the seller's premises.

Net Income

The final amount a company earns, following the deduction of all expenditures and taxes from its total revenue.

Ending Inventory

The cost of inventory on hand for selling at the conclusion of an accounting cycle.

Consignment

A business arrangement wherein goods are left in the possession of an authorized third party to sell, but ownership remains with the supplier until items are sold.