Which of the Following Statements Is FALSE

question 65

Multiple Choice

Which of the following statements is FALSE?

• A)If the CAPM correctly computes the risk premium,investors would stop investing only when they expected the alpha of an investment strategy to be negative.
• B)If the CAPM correctly computes the risk premium,an investment opportunity with a positive alpha is a positive NPV investment opportunity.
• C)If the CAPM correctly computes the risk premium,investors should flock to invest in positive alpha stocks.
• D)Anyone can implement a momentum trading strategy and therefore generate a positive investment opportunity.

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Definitions:

Entrepreneurial Start Up

A phase in the life of a business where an idea is transformed into a marketable product or service through innovative means.

Entrepreneurial Behaviours

Actions and practices characterized by the initiative to start and manage ventures, including risk-taking, innovative approaches to problem-solving, and the capacity to exploit opportunities.

Dynamic Environments

Dynamic environments refer to settings that are constantly changing, requiring organizations to adapt quickly to new trends, technologies, and market demands.

Competitive Environments

Marketplaces in which multiple businesses vie for the same customer base or resources, often leading to innovation and improvements in products or services.