Which of the Following Statements Is FALSE

question 12

Multiple Choice

Which of the following statements is FALSE?

• A)As a practical matter,it is extremely difficult to identify portfolios that are efficient because we cannot measure the expected return and the standard deviation of a portfolio with great accuracy.
• B)The portfolios in a multifactor model can be thought of as either risk factors themselves or portfolios of stocks correlated with unobservable risk factors.
• C)Each factor beta is the expected percent change in the excess return of a security for a 1% change in the excess return of the factor portfolio.
• D)Even if the market portfolio is not efficient,it still must capture all components of systematic risk.

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Definitions:

False Light

A privacy tort involving publishing information that portrays someone in a misleading or deceitful manner, which could be embarrassing or offensive, even if not defamatory.

Actual Malice

The legal test used by the courts to determine defamation against a public official or a public figure. The actual malice test requires the public official or public figure to prove not only that the statement was false, negative, and communicated to a third party, but also that it was made with the knowledge that it was false or with a reckless disregard for its truth or falsity.

Defamation

A false statement presented as fact that causes injury or damage to the reputation of the person or entity targeted by the statement.

Comparative Negligence

Comparative Negligence is a legal principle that reduces the amount of damages a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to the cause of their injuries.