Which of the Following Statements Is False

question 41

Multiple Choice

Which of the following statements is false?

• A) One difficulty when trying to estimate beta for a security is that beta depends on the correlation and volatility of the security's and market's realized returns in the past.
• B) Having identified the S&P/TSX Composite Index as a market proxy, the next step in calculating the risk premium for a security is to determine the security's beta.
• C) Many data sources provide estimates of beta based on historical data.
• D) The differences in betas by industry reflect the sensitivity of each industry's profits to the general health of the economy.

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Definitions:

Cleavage

The process of cell division in the early embryo, leading to the formation of a multicellular structure.

Vegetal Hemisphere

In biology, the lower half of an egg or embryo where the yolk and nutritive tissues are concentrated, opposite to the animal hemisphere.

Animal Hemisphere

The upper half of an egg (in many animals) where most of the cytoplasm is located, opposite the vegetal hemisphere.

Blastula

The blastula is an early stage of embryonic development in animals, characterized by a hollow sphere of cells following the morula stage.