Which of the Following Statements Is FALSE

question 12

Multiple Choice

Which of the following statements is FALSE?

• A)As a practical matter,it is extremely difficult to identify portfolios that are efficient because we cannot measure the expected return and the standard deviation of a portfolio with great accuracy.
• B)The portfolios in a multifactor model can be thought of as either risk factors themselves or portfolios of stocks correlated with unobservable risk factors.
• C)Each factor beta is the expected percent change in the excess return of a security for a 1% change in the excess return of the factor portfolio.
• D)Even if the market portfolio is not efficient,it still must capture all components of systematic risk.

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Definitions:

Fracture

A break in bone or cartilage, which can range from a small crack to a complete break.

Seventh Characters

Additional characters in some coding systems used to provide more specific information about a condition.

Subsequent Encounter

A term used in medical billing and coding to indicate an appointment or treatment after the initial encounter for a condition.

Initial Encounter

The first visit or consultation for a new condition in the medical setting.