Which of the Following Statements Is FALSE

question 54

Multiple Choice

Which of the following statements is FALSE?

• A)Because expected returns are not easy to estimate,each portfolio that is added to a multifactor model increases the difficulty of implementing the model.
• B)The self-financing portfolio made from high minus low book-to-market stocks is called the high-minus-low (HML)portfolio.
• C)The FFC factor specification was identified a little more than ten years ago.Although it is widely used in academic literature to measure risk,much debate persists about whether it really is a significant improvement over the CAPM.
• D)A trading strategy that each year short sells portfolio S (small stocks)and uses this position to buy portfolio B (big stocks)has produced positive risk adjusted returns historically.This self-financing portfolio is widely known as the small minus big (SMB)portfolio.

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Definitions:

Potassium

An essential mineral and electrolyte necessary for the function of nerves and muscles, including the heart.

Preschool-Age Child

Refers to children who are in the age range of 3 to 5 years old, just before they enter the formal school system, emphasizing the importance of early childhood development and education during these formative years.

Lifelong Food Habits

Eating patterns and dietary choices that are established early in life and carried throughout one's lifetime.

Clear Liquid Diet

A diet that consists of clear liquids and foods that turn to clear liquids at room temperature, used medically to prepare the digestive tract for certain procedures or tests.