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.

---

Definitions:

Funds

Financial resources set aside for a specific purpose or project.

Presidential Candidate

An individual who is running for the office of the president in an election.

Major Party

A political party with widespread support and influence within a political system, typically capable of winning elections and forming government.

Voter Turnout

The percentage of eligible voters who cast a ballot in an election, indicating the level of public participation.