Which of the Following Statements Is False

question 55

Multiple Choice

Which of the following statements is false?

• A) There may be reasons to exclude certain historical data as anomalous when estimating beta.
• B) Many practitioners use adjusted betas, which are calculated by averaging the estimated beta with 1.0.
• C) The beta estimated we obtain from linear regression can be very sensitive to outliers, which are returns of unusually small magnitude.
• D) If we use very old data to when estimating beta, they data may be unrepresentative of the current market risk of the security.

---

Definitions:

Feminism

A movement and ideology that advocates for equal rights, opportunities, and treatment of women in society.

Women's Issues

Topics and challenges specifically related to women's rights, health, and equality in society.

Backlash

refers to a strong negative reaction by a large number of people, especially to social or political developments.

Stereotypes

Oversimplified and generalized views or beliefs about a particular group of people or things.