Which of the Following Statements Is FALSE

question 26

Multiple Choice

Which of the following statements is FALSE?

• A)Rather than relying on the efficiency of a single portfolio (such as the market),multifactor models rely on the weaker condition that an efficient portfolio can be constructed from a collection of well-diversified portfolios or factors.
• B)A positive alpha in a single-factor model means that the portfolios that implement the trading strategy capture risk that is not captured by the market portfolio.
• C)Multifactor models have a distinct advantage over single-factor models in that it is much easier to identify a collection of portfolios that captures systematic risk than just a single portfolio.
• D)Trading strategies based on market capitalization,book-to-market ratios,and momentum have been developed that appear to have zero alphas.

Understand the disadvantages of being a public company.

Comprehend the importance of having a harvest goal from the beginning of a venture.

Understand the attributes and behaviors of authentic leadership.

Recognize the components and practices of transactional leadership.

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Definitions:

Rigidity

The lack of flexibility or the refusal to change opinions, behaviors, or procedures despite new information or changing circumstances.

Competent Manager

An individual who possesses the necessary skills, knowledge, and attitude to effectively lead and manage a team or project.

Performance Excellence

Achieving outstanding results and quality in tasks or duties.

Benchmarking

A process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.