Which of the Following Statements Is False

question 43

Multiple Choice

Which of the following statements is false?

• A) Many practitioners analyze other financial characteristics of a firm, when they forecast betas.
• B) U.S. Treasuries are never subject to interest rate risk unless we select a maturity equal to our investment horizon.
• C) If a firm where 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:

Performance Target

A predefined goal or objective used to measure the efficiency, effectiveness, and success of an organization or individual's activities.

Learning and Growth

Learning and Growth refer to strategies or initiatives within an organization aimed at boosting the capabilities and satisfaction of its employees through training and development, impacting the long-term success of the organization.

Strategic Objective

A result that a business aims to achieve that defines the purpose of an action taken; a subcomponent of the overall entity’s mission statement or strategy.

Balanced Scorecard

A strategic planning and management system used by organizations to communicate objectives, monitor performance, and evaluate their progress towards achieving strategic goals.