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:

Ethical Leadership

A leadership style that is characterized by guiding others in ethical ways to establish and maintain a moral relationship between leaders and followers.

High Levels of Ethics

The practice of consistently adhering to moral principles and standards of behavior, demonstrating integrity, fairness, and respect towards others.

Burns

Could refer to physical injuries caused by heat, chemicals, electricity, sunlight, or radiation, or metaphorically to intense or damaging experiences.

Moral Dimension

Refers to the ethical aspect of decisions and actions, considering what is right and wrong.