Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A) As a practical matter, it is extremely difficult to identify portfolios that are efficient because we cannot measure the expected return and the standard deviation of a portfolio with great accuracy.
• B) The portfolios in a multifactor model can be thought of as either risk factors themselves or portfolios of stocks correlated with unobservable risk factors.
• C) Each factor beta is the expected percent change in the excess return of a security for a 1% change in the excess return of the factor portfolio.
• D) Even if the market portfolio is not efficient, it still must capture all components of systematic risk.

---

Definitions:

Gender Differences

Pertains to the distinctions in characteristics, behaviors, roles, and psychological attributes traditionally associated with being male or female in a society.

Ossified

Becoming rigid or inflexible, often used metaphorically to describe ideas or structures that are no longer open to change.

Sleeper Effects

The detrimental effects of early-life adversity that occur only later in development.

Early-Life Adversity

Profound and pervasive deprivation experienced during infancy, often resulting in severe developmental delays.