Which of the Following Statements Is False

question 48

Multiple Choice

Which of the following statements is false?

• A) Securities that tend to move more than the market have betas higher than 0.
• B) Securities whose returns tend to move in tandem with the market on average have a beta of 1.
• C) Beta corresponds to the slope of the best fitting line in the plot of the security's excess returns versus the market's excess return.
• D) The statistical technique that identifies the best-fitting line through a set of points is called linear regression.

---

Definitions:

Baroreceptors

Sensory nerve endings located in the walls of blood vessels and the heart that detect changes in blood pressure and help regulate it.

Vasoconstriction

The narrowing of blood vessels, which increases blood pressure by reducing the volume of blood flow.

Growth Hormone

Hormone that stimulates general growth of the individual; stimulates cellular amino acid uptake and protein synthesis; also called somatotropin.

Atrial Natriuretic Hormone

A hormone secreted by the atria of the heart in response to volume expansion and increased blood pressure, inducing diuresis and vasodilation, and reducing blood pressure.