Which of the Following Statements Is False

question 42

Multiple Choice

Which of the following statements is false?

• A) The existence of the momentum trading strategy 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:

1960s

A decade marked by significant social, political, and cultural changes worldwide, including civil rights movements, counterculture, and technological advancements.

Normal Balance

The side of the account (debit or credit) on which increases to the account are recorded, based on the account type.

Financial Statement

Official documents detailing the monetary transactions and financial status of a company, person, or any distinct unit.

Permanent/Temporary

Describes items or accounts within financial accounting that either persist over time (permanent) or are expected to be concluded within a certain period (temporary).