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.

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Definitions:

Intermarriage

Marriage between partners who are from different social, racial, religious, ethnic, or cultural backgrounds.

Racism

Prejudice, discrimination, or antagonism directed against individuals or groups based on their race or ethnicity, often stemming from a belief in racial superiority or inferiority.

Internal Colonialism

A concept that explains how a country's dominant group exploits minority groups for its economic advantage, often creating economic and political inequalities within a nation.

Brain Size

The physical measurement of the brain's volume, often discussed in relation to cognitive abilities or evolutionary biology.