Which of the Following Statements Is FALSE

question 32

Multiple Choice

Which of the following statements is FALSE?

• A)Because of the higher and uncompensated risk involved,no investor should choose a portfolio with a negative alpha.
• B)Because the average portfolio of all investors is the market portfolio,the average alpha for all investors is zero.
• C)The market portfolio can be inefficient if a significant number of investors misinterpret information and believe they are earning a positive alpha when they are actually earning a negative alpha.
• D)If no investor earns a positive alpha,then no investor can earn a negative alpha,and the market portfolio must be efficient.

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Definitions:

Complement

A part of the immune system that enhances the ability of antibodies and phagocytic cells to clear pathogens from an organism.

Eosinophil

A type of white blood cell involved in the body's immune response, particularly known for its role in combating multicellular parasites and certain infections.

Spleen Rupture

A break or tear in the spleen, often due to injury, which can lead to internal bleeding and require urgent medical attention.

Left Hypochondriac Region

An area of the abdomen located to the left of the epigastric region and above the left lumbar region, containing parts of the stomach and the left kidney.