Which of the Following Statements Is FALSE

question 55

Multiple Choice

Which of the following statements is FALSE?

• A)Portfolios with high market capitalizations must have positive alphas if the market portfolio is not efficient.
• B)The book-to-market is the observation that firms with high book-to-market ratios have positive alphas.
• C)If the market portfolio is not efficient,then a portfolio of high book-to-market stocks will likely have positive alphas.
• D)Portfolios with low book-to-market ratios must have zero alphas if the market portfolio is efficient.

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Definitions:

High Rate Of Metabolism

The condition of having an exceptionally fast metabolic rate, which results in rapid energy consumption and often increased caloric needs.

Migraine Headaches

A neurological condition characterized by intense and often debilitating headaches, frequently accompanied by nausea and sensitivity to light and sound.

Narcissistic Personality Disorder

Narcissistic Personality Disorder is a mental condition characterized by a long-term pattern of exaggerated self-importance, need for excessive admiration, and a lack of empathy for others.

Self-Focused

The state of being preoccupied with oneself and one's own needs, concerns, or interests, often at the expense of broader awareness.