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:

San Lorenzo

An archaeological site in Mexico, notable for its colossal Olmec sculptures and as an early center of Olmec civilization.

La Venta

An ancient Olmec civilization site in Mexico, known for its colossal stone heads, ceremonial complexes, and as a center for Olmec culture from 1200 BCE to 400 BCE.

Olmec Culture

An early Mesoamerican civilization known for its monumental sculpture, particularly the colossal stone heads, and its influence on later cultures.

Classic Maya

Refers to the period and region in ancient Mesoamerica known for its advancements in art, architecture, astronomy, and hieroglyphic writing.