Which of the Following Statements Is FALSE

question 86

Multiple Choice

Which of the following statements is FALSE?

• A)If the market portfolio were not efficient,investors could find strategies that would "beat the market" with higher average returns and lower risk.
• B)The CAPM states that the cost of capital depends only on systematic risk.
• C)The Capital Asset Pricing Model (CAPM)is primarily a theoretical model and is rarely used in practice to estimate the cost of capital.
• D)The market portfolio is an efficient portfolio.

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