Which of the Following Statements Is FALSE

question 64

Multiple Choice

Which of the following statements is FALSE?

• A) If indeed alphas are positive, it is possible that the positive alpha trading strategies contain risk that investors are unwilling to bear but the CAPM does not capture.
• B) If indeed alphas are positive, it is possible that the costs of implementing investment strategies are larger than the NPVs of undertaking them.
• C) If indeed alphas are positive, then investors have to be systematically ignoring negative-NPV investments opportunities.
• D) The only way a positive NPV investment opportunity can exist in a market is if some barrier to entry restricts competition.

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Definitions:

Sense Of Initiative

A feeling of confidence and determination to take decisive action and make the first steps in doing something.

Protective Optimism

An optimistic outlook that can serve as a psychological buffer against the negative effects of stress or adversity.

Overwhelming Pride

A feeling of excessive self-esteem or self-importance that can lead to arrogance and lack of concern for others.

Intrinsic Motivation

Motivation driven by an interest or enjoyment in the task itself, rather than external pressure or rewards.