Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A) As a practical matter, it is extremely difficult to identify portfolios that are efficient because we cannot measure the expected return and the standard deviation of a portfolio with great accuracy.
• B) The portfolios in a multifactor model can be thought of as either risk factors themselves or portfolios of stocks correlated with unobservable risk factors.
• C) Each factor beta is the expected percent change in the excess return of a security for a 1% change in the excess return of the factor portfolio.
• D) Even if the market portfolio is not efficient, it still must capture all components of systematic risk.

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Definitions:

International Accounting Standards

A set of accounting standards developed and overseen by the International Accounting Standards Board (IASB) to ensure transparency, accountability, and efficiency in financial markets worldwide.

Multinational Corporations

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Information Technology

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IFRS

A global set of accounting guidelines created by the International Accounting Standards Board (IASB), known as the International Financial Reporting Standards.