Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A)We can improve the performance of our portfolio by selling stocks with negative alphas.
• B)The market portfolio is on the SML,and according to the CAPM,since all other portfolios are inefficient,they will not fall on the SML.
• C)The difference between a stock's expected return and its required return according to the security market line is called the stock's alpha.
• D)The risk premium for any security is proportional to its beta with the market.

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Definitions:

Urine Volume

Urine volume is the total amount of urine excreted by the kidneys over a specified period, an important measure for assessing renal function and fluid balance.

Baroreceptors

Sensory nerve endings present in the walls of blood vessels and the heart that detect changes in blood pressure and help regulate it.

ADH Secretion

The release of Antidiuretic Hormone, which helps regulate water balance in the body by increasing water reabsorption in the kidneys.

Elevated Blood Pressure

A condition characterized by higher than normal pressure exerted by circulating blood against the walls of the arteries, also known as hypertension.