Which of the Following Statements Is False

question 104

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 securities excess returns versus the market excess return.
• D) The statistical technique that identifies the bets-fitting line through a set of points is called linear regression.

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Definitions:

Coalition

An alliance among individuals or groups, especially during a negotiation or in politics, to achieve a common goal.

Bedfellows

Unlikely or surprising partners united by common interests or objectives.

Negotiator

A negotiator is someone who is involved in discussions aimed at reaching an agreement or resolving a dispute, possessing skills in communication, persuasion, and strategy.

Trust

A firm belief in the reliability, truth, ability, or strength of someone or something.