Which of the Following Statements Is FALSE

question 78

Multiple Choice

Which of the following statements is FALSE?

• A)Securities that tend to move more than the market have betas lower than 0.
• B)Securities whose returns tend to move in tandem with the market on average have a beta of 1.
• C)Beta corresponds to the slope of the best-fitting line in the plot of the securities excess returns versus the market excess return.
• D)The statistical technique that identifies the best-fitting line through a set of points is called linear regression.

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