Which of the Following Statements Is FALSE

question 11

Multiple Choice

Which of the following statements is FALSE?

• A)A conclusion of the CAPM is that investors should hold the market portfolio only if they have high quality information.
• B)A conclusion of the CAPM is that investors should hold the market portfolio even if they do not have high trading skills.
• C)Even naive investors with no information should hold the market portfolio.
• D)The CAPM assumption of homogeneous expectations is not necessarily a good description of the real world.

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