Use the Table for the Question(s)below

question 14

Multiple Choice

Use the table for the question(s) below.
Consider the following three individuals portfolios consisting of investments in four stocks:
-Which of the following statements is FALSE?

• A)Investors may have different information regarding expected returns,correlations,and volatilities,but they correctly interpret that information and the information contained in market prices and they adjust their estimates of expected returns in a rational way.
• B)Investors may learn different information through their own research and observations,but as long as they understand the differences in information and learn from other investors by observing prices,the CAPM conclusions still stand.
• C)Every investor,regardless of how much information he has access to,can guarantee himself an alpha of zero by holding the market portfolio.
• D)The CAPM requires making the strong assumption of homogeneous expectations.

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Definitions:

Product Descriptors

Terms or phrases used to describe key attributes or features of a product to consumers.

Product Features

Attributes or characteristics of a product that are intended to offer benefits and solve consumers' problems.

Brand Marks

Visual symbols or logos that identify a brand, making it recognizable to consumers.

Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.