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:

Batch Fit Tool

A Batch Fit Tool is a software or methodology used in manufacturing and production to ensure compatibility and optimize the grouping of items, components, or materials in batches.

Crystal Ball

A metaphorical term often used to describe the attempt to predict future events or outcomes with certainty.

Empirical Data

Information obtained through observation or experimentation rather than theory or pure logic.

Crystal Ball

A metaphorical term often used to describe the act of predicting future events with certainty.