Which of the Following Statements Is False

question 54

Multiple Choice

Which of the following statements is false?

• A) The size effect is the observation that small stocks have positive alphas.
• B) When considering portfolios formed based on the market-to-book ratio, most of the portfolios plot below the security market line.
• C) The largest alphas occur in the smallest size deciles.
• D) When considering portfolios formed based on size, although the portfolios with the higher betas yield higher returns, most size portfolios plot above the security market line.

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Definitions:

Strengths Assessments

Tools or processes used to identify an individual's areas of strong performance or talent, often for personal development or organizational placement.

Background Checks

A process used by organizations to verify the credentials and history of potential employees.

Job Rotation

A human resource strategy involving the movement of employees between different jobs or tasks to increase work variety and promote skills development.

Routine Assignments

Tasks or duties that are part of a regular schedule or procedure, often repetitive and considered to be of a standard or typical nature.