Various trading strategies appear to offer non-zero alphas when we examine real world data.If indeed these alphas are positive,it could be explained by any of the following statements EXCEPT:
A) Investors are systematically ignoring positive-NPV investment opportunities.
B) The market portfolio is inefficient, but the market portfolio proxy used to calculate the alphas is efficient.
C) A stock's beta with the market portfolio does not adequately measure a stock's systematic risk.
D) The positive alpha trading strategies contain risk that investors are unwilling to bear but the CAPM does not capture.
Correct Answer:
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Q1: Which of the following statements is false?
A)
Q2: According to the CAPM,investors should hold _
Q3: Uninformed individuals tend to _ the precision
Q4: Which of the following statements is false?
A)
Q5: Which of the following statements is false?
A)
Q7: Which of the following statements is false?
A)
Q8: Which of the following statements is false?
A)
Q9: There is an important difference between the
Q11: Which of the following statements is false?
A)
Q56: What does the existence of a positive
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