Which of the Following Statements Is FALSE

question 2

Multiple Choice

Which of the following statements is FALSE?

• A)If indeed alphas are positive,it is possible that the positive alpha trading strategies contain risk that investors are unwilling to bear but the CAPM does not capture.
• B)If indeed alphas are positive,it is possible that the costs of implementing investment strategies are larger than the NPVs of undertaking them.
• C)If indeed alphas are positive,then investors have to be systematically ignoring negative-NPV investment opportunities.
• D)The only way a positive NPV investment opportunity can exist in a market is if some barrier to entry restricts competition.

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Definitions:

External Communication

Communication that occurs between an organization and parties outside of it, such as customers, investors, and the public, often for marketing or public relations purposes.

Coordination Activities

Tasks that involve organizing and harmonizing different efforts and tasks to ensure effective operation.

Company Culture

The collection of values, beliefs, and behaviors that shape the social and psychological environment of a business.

Knowledge Sharing

The process of exchanging information, skills, or expertise among individuals or organizations to enhance learning and understanding.