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Which of the Following Statements Is False

Question 24

Multiple Choice

Which of the following statements is false?


A) Portfolios with high market capitalizations will have positive alphas if the market portfolio is not efficient.
B) The book-to-market is the observation that firms with high book-to-market ratios have positive alphas.
C) If the market portfolio is not efficient, then a portfolio of high book-to-market stocks will likely have positive alphas.
D) Portfolios with low book-to-market rations will have negative alphas if the market portfolio is not efficient.

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