Which of the Following Statements Is FALSE

question 1

Multiple Choice

Which of the following statements is FALSE?

• A)Beta is the expected percent change in the excess return of the security for a 1% change in the excess return of the market portfolio.
• B)Beta represents the amount by which risks that affect the overall market are amplified for a given stock or investment.
• C)It is common practice to estimate beta based on the historical correlation and volatilities.
• D)Beta measures the diversifiable risk of a security,as opposed to its market risk,and is the appropriate measure of the risk of a security for an investor holding the market portfolio.

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Definitions:

High-Pitched Sounds

Sounds that are high in frequency, typically perceived as shrill or squeaky by the human ear.

Atonia

A condition characterized by a lack of muscle strength or muscle tone, often occurring during sleep phases such as REM sleep.

Pertussis

Also known as whooping cough, a highly contagious bacterial disease causing severe coughing fits and difficulty breathing.

Upper Frequencies

The higher range of frequencies or pitches, often associated with sounds or signals.