Which of the Following Statements Is FALSE

question 16

Multiple Choice

Which of the following statements is FALSE?

• A)We should be suspicious of beta estimates that are extreme relative to industry norms.
• B)When using historical data,there is always the possibility of estimation error.
• C)Evidence suggests that betas tend to revert toward zero over time.
• D)For stocks,common practice is to use at least two years of weekly return data or five years of monthly return data when estimating beta.

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Definitions:

Objectives Project

A planned set of tasks aimed at achieving specific goals within a defined timeframe, usually with set objectives to guide its execution.

Specific Objective

A precise and measurable goal that an entity aims to achieve.

Cash Receipts

Money received by a business during a given period, including sales, returns, and other sources.