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.

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Definitions:

Oral Airway

A medical device used to keep the airway open by preventing the tongue from covering the epiglottis.

Oral Secretions

Saliva or mucus produced in the mouth, often increased by infection or other medical conditions.

Lemon Glycerin Swabs

Swabs coated with lemon and glycerin used to moisten and cleanse the patient's oral cavity.

Cardiac Arrests

Sudden stops in effective blood circulation due to the failure of the heart to contract effectively, which requires immediate medical intervention to prevent death.