Which of the Following Statements Is False

question 73

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:

Affective Realms

Pertains to the domain of emotions and feelings, emphasizing how these aspects influence learning and behavior.

Cognitive Realms

Areas or aspects of mental processes and functions, including perception, memory, reasoning, and problem-solving.

Problem-Solving

Problem-solving is the process of identifying a problem, devising and implementing a solution, and evaluating the outcome to resolve an issue or challenge.

Personal Traits

are characteristics or qualities that form an individual's distinctive character or personality.