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:

Courage

The ability to confront fear, pain, danger, uncertainty, or intimidation.

Followership Process

The dynamics and behaviors of individuals in a subordinate role, focusing on how they contribute to the effectiveness of leadership and organizational objectives.

Partner Style

A leadership approach emphasizing collaboration, trust, and mutual respect between leaders and followers.

Exemplary Follower

An individual who actively supports their leader, contributes positively to the team's objectives, and demonstrates initiative, responsibility, and commitment.