Which of the Following Statements Is FALSE

question 41

Multiple Choice

Which of the following statements is FALSE?

• A)To improve the performance of their portfolios,investors who are holding the market portfolio will compare the expected return of each security with its required return from the security market line.
• B)The Sharpe ratio of a portfolio will increase if we sell stocks with positive alphas.
• C)When a stock's alpha is not zero,investors can improve upon the performance of the market portfolio.
• D)When the market portfolio is efficient,all stocks are on the security market line and have an alpha of zero.

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Definitions:

Impermeable

Incapable of being passed through or penetrated, often used to describe materials that liquids or gases cannot permeate.

Right Lymphatic Duct

A major lymphatic vessel that drains lymph from the right upper limb, right side of the thorax, and the right halves of the head and neck into the bloodstream.

Thoracic Duct

The largest lymphatic vessel in the human body, which drains lymph into the bloodstream from the lower and left side of the body.

Lumbar Trunk

A term typically used to describe the part of the body that includes the lower spine and surrounding region.