Which of the Following Statements Is False

question 12

Multiple Choice

Which of the following statements is false?

• A) If the CAPM correctly computed the risk premium, investors would stop investing only when they expected the alpha of an investment strategy to be negative.
• B) If the CAPM correctly computes the risk premium, an investment opportunity with a positive alpha is a positive-NPV investment opportunity.
• C) If the CAPM correctly computes the risk premium, investors should flock to invest in positive alpha stocks.
• D) Anyone can implement a momentum trading strategy and therefore generate a positive investment opportunity.

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Definitions:

Diastolic Blood Pressure

The bottom number in a blood pressure reading, representing the pressure in the arteries when the heart rests between beats.

Clinical Protocol

A written plan detailing the procedure for conducting a clinical trial or medical treatment, outlining the study's objectives, design, methodology, statistical considerations, and organization.

Antihypertensive Medication

Drugs used to treat high blood pressure (hypertension) by lowering blood pressure to prevent complications such as stroke and heart attack.

Leg Fracture

A break or crack in any of the bones constituting the human leg, often resulting from trauma, falls, or high-impact activities.