Which of the Following Statements Is FALSE

question 53

Multiple Choice

Which of the following statements is FALSE?

• A) The existence of the momentum trading strategy has been widely known for at least ten years.
• B) The information required to implement a momentum strategy is not readily available to investors.
• C) If the market portfolio is not efficient, then a stock's beta with the market is not an adequate measure of its systematic risk.
• D) If the market portfolio is not efficient, then the so-called profits from a positive alpha trading strategy are really returns for bearing risk that investors are averse to and the CAPM doesn't capture.

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Definitions:

Floating Charge

A security interest over a fluctuating pool of assets, such as inventory or receivables, which allows the borrower to use the assets in the course of business.

Liquidator

A person or entity appointed to wind up the affairs of a company and dispose of its assets in the event of its liquidation.

Winding Up

The process of concluding a company's affairs, settling its liabilities, and distributing the remaining assets to the shareholders or owners.

Corporations Act

The legislation governing corporate practices, including financial reporting and corporate governance, in particular jurisdictions such as Australia.