Which of the Following Statements Is False

question 74

Multiple Choice

Which of the following statements is false?

• A) If indeed alphas are positive, it is possible that the positive alpha trading strategies contain risk that investors are unwilling to bear but the CAPM does not capture.
• B) If indeed alphas are positive, it is possible that the costs of implementing investment strategies are larger than the NPVs of undertaking them.
• C) If indeed alphas are positive, then investors have to be systematically ignoring positive-NPV investments opportunities.
• D) The only way a positive NPV investment opportunity can exist in a market is if some barrier to entry restricts competition.

Understand the basics of genetic contribution from parents to offspring and the determination of sex in humans.

Distinguish between elastic, inelastic, and unit-elastic demand.

Predict the effects of price changes on total revenue and expenditures, given the elasticity of demand.

Understand the concept of price elasticity of supply.

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Definitions:

Optimum Interstimulus Interval

The ideal time gap between the presentation of a conditioned stimulus and an unconditioned stimulus for effective associative learning to occur.

Knee-Jerk Reflex

A reflexive action produced by a sharp tap on the tendons just below the kneecap, demonstrating the patellar reflex.

CS

Stands for Conditioned Stimulus, which is a previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

UCS

Unconditioned Stimulus, an aspect of classical conditioning; a stimulus that naturally triggers a reflexive or unconditioned response without prior learning.