Which of the Following Statements Is False

question 34

Multiple Choice

Which of the following statements is false?

• A) If the market portfolio were not efficient, investors could find strategies that would "beat the market" with higher average returns and lower risk.
• B) The CAPM states that the cost of capital depends only on systematic risk.
• C) Efficient capital markets is a much stronger hypothesis than the CAPM.
• D) The market portfolio is an efficient portfolio.

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Definitions:

Enterprise Union

An organization representing workers within a single company or enterprise rather than across multiple workplaces or sectors.

Single Company

Pertaining to a business or organization that operates independently, without affiliations or connections to other companies within its sector.

Socialist Market Economy

An economic system where the production and distribution of goods occur within the framework of both the market economy and socialism, often featuring state ownership of key industries.

Economic System

The framework through which a society allocates resources and distributes goods and services among its population.