Which of the Following Statements Is False

question 57

Multiple Choice

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:

Treatment Goals

Specific objectives set in a therapeutic context, aimed at addressing and resolving the client's issues or symptoms.

Baseline Assessment

Initial evaluation or measurement of a condition, capability, or situation before an intervention or start of a process, to compare against future measurements.

A-B-C Analysis

A cognitive-behavioral technique used to understand the connection between an Antecedent, Behavior, and Consequence, aimed at modifying unhelpful behaviors.

Core Beliefs

Fundamental, deeply held assumptions that guide one's perceptions, actions, and reactions.