Which of the following is FALSE? The return of 90 -day Treasury Bills is often referred to as the "risk free rate" since principle and interest payment are guaranteed by the US Government and given the short-term maturity of such securities, there is very little price fluctuation. Security selection is the process of deciding which securities to hold within each of the various asset classes. Asset allocation is the decision of how much an investor allocates to stocks, bonds, cash and other assets such as commodities, hedge funds, real estate, etc. This is most important investment decision investors can make. The equity risk premium is the return of the stocks in excess of the risk free rate. This excess return is compensation for bearing the risk from investing in stocks. If markets are efficient then only skilled managers can find bargains