Which of the Following Statements Is FALSE

question 41

Multiple Choice

Which of the following statements is FALSE?

• A)To improve the performance of their portfolios,investors who are holding the market portfolio will compare the expected return of each security with its required return from the security market line.
• B)The Sharpe ratio of a portfolio will increase if we sell stocks with positive alphas.
• C)When a stock's alpha is not zero,investors can improve upon the performance of the market portfolio.
• D)When the market portfolio is efficient,all stocks are on the security market line and have an alpha of zero.

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Definitions:

Reducing Anger

Techniques and strategies aimed at lowering the intensity of feelings of anger or frustration to manage conflict and stress more effectively.

Negative Emotion

Feelings that are generally considered to be unpleasant or undesirable, such as sadness, anger, or fear.

Enthusiasm

The feeling of great eagerness and interest towards a particular subject or activity, often leading to active participation or engagement.

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.