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:

Self-actualizers

Individuals who have realized their potentials and capabilities, achieving the highest level of personal growth and fulfillment.

Maslow

Refers to Abraham Maslow, an American psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Appreciate

The recognition and enjoyment of the good qualities of someone or something, often leading to a sense of gratitude.

Self-actualize

The process of realizing or achieving one's potential and capacities, making it a key goal in humanistic psychology.