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:

Adequate Number

A quantity deemed sufficient to meet a particular need or requirement.

Proportion of Residents

The ratio or percentage of individuals residing in a particular area or belonging to a specified demographic group.

Hired Housecleaners

Individuals or employees engaged in the cleaning and maintenance of residences, typically on a paid contractual basis.