Which of the Following Statements Is False

question 54

Multiple Choice

Which of the following statements is false?

• A) The size effect is the observation that small stocks have positive alphas.
• B) When considering portfolios formed based on the market-to-book ratio, most of the portfolios plot below the security market line.
• C) The largest alphas occur in the smallest size deciles.
• D) When considering portfolios formed based on size, although the portfolios with the higher betas yield higher returns, most size portfolios plot above the security market line.

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Definitions:

Resistance To Change

The act of opposing or struggling against modifications or transformations within an organization or in personal behavior.

Group Inertia

The tendency of a group to maintain its current state or resist changes in direction or performance.

Intrapreneurship

The practice of encouraging employees within a company to develop innovative ideas or projects, which can lead to the creation of new services or products.

Organizational Force

The collective energy and direction driven by an organization's culture, structure, and processes.