Which of the Following Statements Is FALSE

question 56

Multiple Choice

Which of the following statements is FALSE?

• A)All investors should demand the same efficient portfolio of securities in the same proportions.
• B)The Capital Asset Pricing Model (CAPM)allows corporate executives to identify the efficient portfolio (of risky assets)by using knowledge of the expected return of each security.
• C)If investors hold the efficient portfolio,then the cost of capital for any investment project is equal to its required return calculated using its beta with the efficient portfolio.
• D)The CAPM identifies the market portfolio as the efficient portfolio.

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Definitions:

Representational Systems

The methods by which information is stored, processed, and communicated, often within the context of cognitive psychology or information theory.

Modeled Behavior

Behavior learned through observing and imitating the actions of others, a process fundamental to social learning theory.

Consequences

Refers to the outcomes or results that follow from an action or decision.

Vicariously

Experiencing something through another person's actions or experiences, rather than directly oneself.