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:

Decision Points

Critical moments or stages in a process where a specific decision needs to be made to determine the subsequent course of action.

Constraints

Limitations or restrictions that affect the process or outcome of a situation, project, or system.

Generating Ideas

The process of coming up with new and creative concepts or solutions, often through brainstorming or other collaborative methods.

Subsidiary Motions

Procedures used in meetings and parliamentary settings to modify, delay, or affect the decision-making process on main motions.