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:

Receptors

Specialized cells or proteins in the body that bind to specific molecules like hormones, neurotransmitters, or drugs, triggering a specific biological response.

Sensory Stimuli

External or internal events or factors that can be perceived by the senses, leading to physiological or psychological responses.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Visible Spectrum

The narrow band of light waves that are visible to the human eye.