Which of the Following Statements Is FALSE

question 29

Multiple Choice

Which of the following statements is FALSE?

• A)The existence of the momentum trading strategies has been widely known for at least ten years.
• B)The information required to implement a momentum strategy is not readily available to investors.
• C)If the market portfolio is not efficient,then a stock's beta with the market is not an adequate measure of its systematic risk.
• D)If the market portfolio is not efficient,then the so-called profits from a positive alpha trading strategy are really returns for bearing risk that investors are averse to and the CAPM doesn't capture.

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Definitions:

Relativity

A theory in physics, formulated by Albert Einstein, that describes the interrelation of space, time, and gravitation, indicating how they are perceived differently depending on the observer's motion.

Physics

The natural science that studies matter, its motion and behavior through space and time, and the related entities of energy and force.

Predicate

The component of a sentence or proposition that asserts something about the subject, often involving a verb.

Proposition

A statement or assertion that expresses a judgment or opinion; in logic, a declarative sentence that is either true or false.