Which of the Following Statements Is False

question 57

Multiple Choice

Which of the following statements is false?

• A) We measure the degree of estimation error statistically through the standard error of the estimate.
• B) When focusing on the returns of a single security, it is common practice to assume that all dividends are immediately invested at the risk-free rate.
• C) We estimate the standard deviation or volatility as the square root of the variance.
• D) We estimate the variance by computing the average squared deviation from the average realized return.

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Definitions:

Cumulative Voting

A voting system commonly used in corporate elections that allows shareholders to concentrate their votes on a single candidate, as opposed to distributing them among multiple candidates.

Straight Voting

A voting system where shareholders must vote for directors individually, with each shareholder's vote proportional to their shareholding.

MBCA

The Model Business Corporation Act (MBCA) provides a template for states in the United States to use in drafting their corporate statutes, aiming to harmonize the law of corporations across states.

Quorum of Shareholders

The minimum number of shareholders required to be present at a meeting in order to legally conduct business.