Which of the Following Statements Is FALSE

question 50

Multiple Choice

Which of the following statements is FALSE?

• A)If the market portfolio is efficient,then all securities and portfolios must plot on the SML,not just individual stocks.
• B)For most stocks the standard errors of the alpha estimates are large,so it is impossible to conclude that the alphas are statistically different from zero.
• C)It is not difficult to find individual stocks that,in the past,have not plotted on the SML.
• D)Small stocks (those with lower market capitalization)have lower average returns.

---

Definitions:

Social

Pertains to activities, processes, or phenomena that involve interactions between individuals or groups in a society.

Intensity

The degree of strength, force, or concentration applied in a specific action, situation, or characteristic.

Brightness

The perception of how luminous an object appears to a viewer, typically influenced by the light it emits or reflects.

Color

A property of objects that results from the light they emit or reflect, perceived through the human eye and interpreted by the brain.