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:

Gametic Isolation

A prezygotic reproductive isolating mechanism in which sexual reproduction between two closely related species cannot occur because of chemical differences in the gametes.

Temporal Isolation

Temporal isolation is a form of reproductive isolation where two species mate or flower at different times of the day, season, or year, preventing interbreeding.

Linnaeus' Classification

A system of categorizing and naming organisms developed by Carl Linnaeus, based on shared physical characteristics.

Structural Differences

Variations in the physical or anatomical organization between organisms, cells, or molecules.