Which of the Following Statements Is FALSE

question 29

Multiple Choice

Which of the following statements is FALSE?

• A)If the market portfolio were not efficient,investors could find strategies that would "beat the market" with higher average returns and lower risk.
• B)The CAPM states that the cost of capital depends only on systematic risk.
• C)Efficient capital markets is a much stronger hypothesis than the CAPM.
• D)The market portfolio is an efficient portfolio.

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Definitions:

Risk of Maltreatment

Describes the likelihood or potential for individuals, particularly vulnerable populations, to experience abuse, neglect, or exploitation.

Critical Force

Critical Force describes an essential or decisive power, effort, or influence needed to overcome obstacles or enact significant change in a challenging scenario.

Rationalization

A defense mechanism where one justifies actions or feelings with logical reasons, even if these are not the true reasons.

Denial

A psychological defense mechanism where an individual refuses to accept reality, truth, or facts.