Which of the Following Statements Is False

question 95

Multiple Choice

Which of the following statements is false?

• A) Many practitioners prefer to use average industry betas rather than individual stock betas.
• B) When estimating beta by using past returns it is best to use the longest time horizon of returns available.
• C) The CAPM predicts that a security's expected return depends on its beta with regard to the market portfolio of all risky investments available to investors.
• D) If we use too short a time horizon when estimating beta, our estimate of beta will be unreliable.

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Definitions:

Secondary Extinctions

Refers to the loss of species due to the extinction of another, indicating a dependency between species within an ecosystem.

Species Diversity

The variety and abundance of different species within a particular region, contributing to the overall biodiversity and health of ecosystems.

Community

Assemblage of species interacting with one another within the same environment.

Immediate Collapse

A rapid fall or failure in structure, function, or health, occurring suddenly and often without warning, in various contexts such as medical or structural engineering.