Which of the Following Statements Is False

question 40

Multiple Choice

Which of the following statements is false?

• A) Many practitioners analyze other financial characteristics of a firm when they forecast betas.
• B) Canadian Treasuries are never subject to interest rate risk unless we select a maturity equal to our investment horizon.
• C) If a firm were to change industries, using its historical beta would be inferior to using the beta of other firms in the new industry.
• D) When using historical returns to forecast future betas, we must be mindful of changes in the environment that might cause the future to differ from the past.

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Definitions:

Land Title Office

A government office that records the ownership and details of land and property.

Builders' Lien Act

Legislation that allows contractors and suppliers to place a lien on a property they have worked on or supplied materials for, to secure payment.

Easement by Prescription

A right to use the property of another acquired through continuous and open use for a period defined by law.

Adverse Possession

A right to actual possession, which can be acquired by non-contested use of the land.