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:

Patriarchy

A social system in which men hold primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property.

Scientific Revolutions

Periods of transformative change and paradigm shifts in the scientific community, characterized by the adoption of new theories and methodologies that significantly alter understanding and knowledge.

Democratic Revolutions

Refers to major political upheavals aimed at establishing more democratic systems of government, typically involving mass participation and demands for political reform.

Sociologists

Experts in sociology, the study of society, social institutions, and social relationships, focusing on understanding patterns of social behavior and organizational structure.