Which of the Following Statements Is Not True

question 39

Multiple Choice

Which of the following statements is not true?

• A)Creative ideas never come out of the blue.
• B)Ideas often emerge during activities unrelated to the enterprise.
• C)Answers usually come to an individual incrementally.
• D)Creative individuals allow their subconscious to mull over information.

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Definitions:

Jensen's Measure

Also known as alpha, it's a metric used to evaluate the performance of an investment portfolio by comparing its risk-adjusted return to a benchmark.

Residual Standard Deviation

A measure of the amount of variance in a dataset not explained by the predictive variables, often used in regression analysis.

Total Abnormal Return

The sum of the differences between the expected return on a security, based on a model like the CAPM, and the actual return over a specific period.

Bogey Portfolio

A benchmark portfolio against which the performance of an investment portfolio can be measured.