Which of the Following Statements Is False

question 42

Multiple Choice

Which of the following statements is false?

• A) The existence of the momentum trading strategy has been widely known for at least ten years.
• B) The information required to implement a momentum strategy is not readily available to investors.
• C) If the market portfolio is not efficient, then a stock's beta with the market is not an adequate measure of its systematic risk.
• D) If the market portfolio is not efficient, then the so-called profits from a positive alpha trading strategy are really returns for bearing risk that investors are averse to and the CAPM doesn't capture.

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Definitions:

Cognitive Development

Refers to the progression of thinking, problem solving, and decision-making abilities from infancy through adulthood.

Maturation

The process of development in which an individual matures or reaches physical or psychological maturity.

Cultural Factors

Elements, such as beliefs, practices, and norms, that shape and influence the behavior and attitudes of a group of people within a society.

Authoritarian

A style of leadership or governance that is characterized by strict obedience to authority at the expense of personal freedom.