Which of the Following Statements Is False

question 8

Multiple Choice

Which of the following statements is false?

• A) Rather than relying on the efficiency of a single portfolio (such as the market), multifactor models rely on the weaker condition that an efficient portfolio can be constructed from a collection of well-diversified portfolios or factors.
• B) A positive alpha in a single factor model means that the portfolios that implement the trading strategy capture risk that is not captured by the market portfolio.
• C) Multifactor models have a distinct advantage over single-factor models in that it is much easier to identify a collection of portfolios that captures systematic risk than just a single portfolio.
• D) Trading strategies based on market capitalization, book-to-market ratios, and momentum have been developed that appear to have zero alphas.

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Definitions:

Brand Identity

The collection of all elements that a company creates to portray the right image to its consumer, including visuals, messaging, and values that differentiate it from competitors.

Positioning

The strategic process of establishing a distinct brand identity and value proposition in the market and in the minds of consumers.

User Needs

The requirements or desires that users expect to be fulfilled by a product or service, influencing their satisfaction and usage behavior.