Which of the Following Statements Is FALSE

question 54

Multiple Choice

Which of the following statements is FALSE?

• A)Because expected returns are not easy to estimate,each portfolio that is added to a multifactor model increases the difficulty of implementing the model.
• B)The self-financing portfolio made from high minus low book-to-market stocks is called the high-minus-low (HML)portfolio.
• C)The FFC factor specification was identified a little more than ten years ago.Although it is widely used in academic literature to measure risk,much debate persists about whether it really is a significant improvement over the CAPM.
• D)A trading strategy that each year short sells portfolio S (small stocks)and uses this position to buy portfolio B (big stocks)has produced positive risk adjusted returns historically.This self-financing portfolio is widely known as the small minus big (SMB)portfolio.

Understand the establishment and significance of Canon Law for the Western Church.

Identify the role and nature of the janissaries in the Ottoman Empire.

Recognize significant political unions in Europe and their impacts.

Acknowledge the persistence of medieval weaponry alongside the introduction of gunpowder.

---

Definitions:

Marginal Cost

The additional cost incurred in producing one more unit of a good or service.

Comparative Advantage

Comparative advantage occurs when a country, individual, or company can produce a good or service at a lower opportunity cost than others.

Geegaws

Decorative trinkets or gadgets, often considered unnecessary or frivolous.

Utility Function

An illustrative model that shows the way individuals prioritize various combinations of products based on their contentment levels.