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:

Employee Representatives

Individuals elected or selected to represent the interests of workers in discussions with management, often in the context of a union.

Occupational Health

A field of healthcare and safety concerning the physical and mental well-being of employees in the workplace.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury in a workplace or environment.

British Columbia

A province located on the west coast of Canada, known for its natural beauty and diverse landscapes.