Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A) The CAPM states that we should use the risk-free interest rate corresponding to the investment horizon of the firm's investors.
• B) To determine the risk premium for a stock using the security market line, we need an estimate of the market risk premium.
• C) When surveyed, the vast majority of large firms and financial analysts reported using the yields of Treasury Bills to determine the risk-free rate.
• D) The risk-free interest rate is generally determined using the yields of U.S. Treasury securities, which are free from default risk.

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Definitions:

Job Satisfaction

The degree to which employees feel content with their job roles, responsibilities, and work environment, influencing their motivation and performance.

Co-Workers

Individuals who work together in the same organization or on the same team, often sharing tasks and responsibilities.

Supervisors

Individuals within an organization responsible for overseeing and guiding the work of employees, often acting as an immediate point of contact for work-related issues.

Objective Measurement

The process of quantifying the performance or outcome of a task using unbiased, verifiable data.