Which of the Following Statements Is FALSE

question 92

Multiple Choice

Which of the following statements is FALSE?

• A)There may be reasons to exclude certain historical data as anomalous when estimating beta.
• B)Many practitioners use adjusted betas,which are calculated by averaging the estimated beta with 1.0.
• C)The beta estimated from linear regression can be very sensitive to outliers,which are returns of unusually small magnitude.
• D)If we use very old data when estimating beta,the data may be unrepresentative of the current market risk of the security.

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Definitions:

Policies

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Positive Messages

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Informative Messages

Messages designed to provide data, facts, or knowledge in a clear and understandable manner.

Audience Attitude

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