Which of the Following Statements Is False

question 17

Multiple Choice

Which of the following statements is false?

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

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Definitions:

United States Pharmacopeia

A compendium of drug standards that ensures the quality, purity, strength, and consistency of medications in the United States.

Drug Standards

Official specifications concerning the quality, strength, purity, and identity of medications, enforced to ensure their safety and efficacy.

National Formulary

A list of medicines and drugs that are approved for use, often by a government or professional body.

Antihypertensive

A medication or other therapy that lowers high blood pressure, also called hypertension.