Which of the Following Statements Is False

question 34

Multiple Choice

Which of the following statements is false?

• A) We can improve the performance of our portfolio by selling stocks with negative alphas.
• B) The market portfolio is on the SML, and according to the CAPM, since all other portfolios are inefficient they will not fall on the SML.
• C) The difference between a stock's expected return and its required return according to the security market line is called the stock's alpha.
• D) The risk premium for any security is proportional to its beta with the market.

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Definitions:

Labour Supply

The total hours that workers in an economy are willing to work at a given real wage rate.

Strategy Implementation

The execution phase where strategies and plans are put into action as a part of the strategic management process to achieve organizational goals.

Performance Management

A systematic approach to improving individual and team activity and outcomes through setting performance standards and providing regular feedback.

Human Resource Forecasting

The process of predicting an organization's future human resource needs based on current data and trends to ensure it meets its objectives with the right number of employees having the necessary skills.