Which of the Following Statements Is FALSE

question 22

Multiple Choice

Which of the following statements is FALSE?

• A)If alphas are indeed positive,it is possible that the positive alpha trading strategies contain risk that investors are unwilling to bear but the CAPM does not capture.
• B)If alphas are indeed positive,it is possible that the costs of implementing investment strategies are larger than the NPVs of undertaking them.
• C)If indeed alphas are positive,then investors have to be systematically ignoring negative-NPV investment opportunities.
• D)The only way a positive NPV investment opportunity can exist in a market is if some barrier to entry restricts competition.

---

Definitions:

Hypothalamus

A region of the brain below the thalamus; it coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Endocrine System

A collection of glands in the body that secrete hormones directly into the circulatory system to regulate various body functions.

Pituitary

A small gland located at the base of the brain that produces hormones influencing various bodily functions, including growth and metabolism.

Fertility

The natural capability to produce offspring, often assessed through rates of conception and childbirth.