Which of the Following Statements Is FALSE

question 26

Multiple Choice

Which of the following statements is FALSE?

• A)Rather than relying on the efficiency of a single portfolio (such as the market),multifactor models rely on the weaker condition that an efficient portfolio can be constructed from a collection of well-diversified portfolios or factors.
• B)A positive alpha in a single-factor model means that the portfolios that implement the trading strategy capture risk that is not captured by the market portfolio.
• C)Multifactor models have a distinct advantage over single-factor models in that it is much easier to identify a collection of portfolios that captures systematic risk than just a single portfolio.
• D)Trading strategies based on market capitalization,book-to-market ratios,and momentum have been developed that appear to have zero alphas.

Understand the steps and legal implications involved in partnership termination.

Comprehend the nature of fiduciary relationships within partnerships.

Recognize how partnerships are treated under federal tax laws.

Differentiate between the various types of partnerships and their specific characteristics.

---

Definitions:

Empirical Studies

Research that relies on observation or experiment rather than theory, often involving the collection and analysis of data.

Scope

The extent, range, or breadth of something, such as a project, research, or an activity.

Double-Blind Procedure

is an experimental method in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias in the results.

Subjective World

An individual's internal experience or perspective, shaped by personal perceptions, feelings, and thoughts.