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.

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Definitions:

Task-Oriented

An approach or individual focused on completing tasks or achieving goals efficiently, often prioritizing work or objectives over personal feelings or relationships.

Self-Concept

An individual's perception of themselves, including beliefs, attributes, and who and what the self is.

Life Position

Feelings of regard for self and others, as reflected in one’s self-esteem.

Self-Esteem

The evaluation of one's own worth or value as reflected in their thoughts, feelings, and behaviors towards themselves.