Which of the Following Statements Is False

question 99

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.

Assess the role of adequacy of consideration in contract enforcement and exceptions related to fraud.

Explain the preexisting duty rule and its exceptions, including additional work and unforeseen circumstances.

Identify the characteristics and enforceability of illusory promises in contracts.

Understand how past consideration impacts the enforceability of promises.

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Definitions:

Supportive Style

An approach in communication or leadership that emphasizes encouragement, empathy, and listening to meet the needs and concerns of others.

Communication Styles Theory

An examination of how different methods of communication impact relationships and understanding among people.

Learned Behavior

Behavior that individuals acquire through interaction with the environment and through the experience of or observing others in their social contexts.

Sociability

The trait of being inclined to engage in social interactions and form relationships with others.