Which of the Following Statements Is FALSE

question 29

Multiple Choice

Which of the following statements is FALSE?

• A)The existence of the momentum trading strategies has been widely known for at least ten years.
• B)The information required to implement a momentum strategy is not readily available to investors.
• C)If the market portfolio is not efficient,then a stock's beta with the market is not an adequate measure of its systematic risk.
• D)If the market portfolio is not efficient,then the so-called profits from a positive alpha trading strategy are really returns for bearing risk that investors are averse to and the CAPM doesn't capture.

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Definitions:

Construction In Progress

The balance sheet account that represents the costs incurred on a construction project during the period it is actively being worked on.

Anticipated Losses

Expected financial deficits that are predicted based on current circumstances or activities.

Completed Contract

An accounting method where revenue and income are recognized only after a contract is finished or the work is completely done.

Percentage Of Completion

An accounting method used to recognize revenue and expenses of long-term contracts proportionally as the contract progresses toward completion.