Which of the Following Statements Is FALSE

question 61

Multiple Choice

Which of the following statements is FALSE?

• A)Many practitioners analyze other financial characteristics of a firm when they forecast betas.
• B)U.S.Treasuries are never subject to interest rate risk unless we select a maturity equal to our investment horizon.
• C)If a firm were to change industries,using its historical beta would be inferior to using the beta of other firms in the new industry.
• D)When using historical returns to forecast future betas,we must be mindful of changes in the environment that might cause the future to differ from the past.

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Definitions:

Defective Product

An item that lacks the safety someone would reasonably expect, posing potential risks of injury or malfunction.

Plaintiff's Claim

A plaintiff's claim is a formal accusation or allegation made in a court by the plaintiff, starting legal proceedings against the defendant.

Tort

A legal wrong or infringement of a right leading to civil legal liability.

Nuisance

An act, condition, or thing that is considered an inconvenience or annoyance, and can sometimes give rise to a legal claim.