Which of the Following Statements Is FALSE

question 65

Multiple Choice

Which of the following statements is FALSE?

• A)If the CAPM correctly computes the risk premium,investors would stop investing only when they expected the alpha of an investment strategy to be negative.
• B)If the CAPM correctly computes the risk premium,an investment opportunity with a positive alpha is a positive NPV investment opportunity.
• C)If the CAPM correctly computes the risk premium,investors should flock to invest in positive alpha stocks.
• D)Anyone can implement a momentum trading strategy and therefore generate a positive investment opportunity.

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Definitions:

Skin

A body covering that acts as a primary barrier against external pathogens and helps in thermoregulation and sensation.

Seminiferous Tubules

Narrow, coiled tubules within the testes where spermatogenesis, the process of sperm production, occurs.

Testosterone

A hormone produced by the testes that maintains the male reproductive structures and male characteristics such as deep voice, body hair, and muscle mass.

Cells

The smallest structural and functional units of organisms, which can exist independently or as part of a tissue, organ, or organism.