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:

Anticoagulant Therapy

Medical treatment involving the use of drugs to prevent blood clots, reducing the risk of strokes and other clots-related complications.

Embolectomy

A surgical procedure intended to remove an embolus or blood clot from a blood vessel to restore normal blood flow.

Hydromorphone

A powerful opioid analgesic medication used to alleviate severe pain by acting on the central nervous system.

Naloxone

A medication used to block the effects of opioids, especially in overdose.