Which of the Following Statements Is FALSE

question 2

Multiple Choice

Which of the following statements is FALSE?

• A)The CAPM states that we should use the risk-free interest rate corresponding to the investment horizon of the firm's investors.
• B)To determine the risk premium for a stock using the security market line,we need an estimate of the market risk premium.
• C)Most financial analysts report using the yields of Treasury Bills to determine the risk-free rate when valuing a long-term investment with an indefinite horizon.
• D)The risk-free interest rate is generally determined using the yields of U.S.Treasury securities,which are free from default risk.

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Definitions:

Hawthorne Studies

A series of productivity experiments conducted from 1924-1932, which found that worker productivity increased under varying levels of light due to the psychological stimulus of being studied.

HR Training

The process by which employees are educated and developed to enhance their job skills and organizational knowledge.

Line Managers

Are those directly responsible for creating goods and services.

General Managers

Managers responsible for overseeing the day-to-day operations of a business or a specific department within an organization.