Which of the Following Statements Is False

question 67

Multiple Choice

Which of the following statements is false?

• A) There may be reasons to exclude certain historical data for being anomalous when estimating beta.
• B) Many practitioners use adjusted betas, which are calculated by averaging the estimated beta with 1.0.
• C) The beta estimated from linear regression can be very sensitive to outliers, which are returns of unusually small magnitude.
• D) If we use very old data to when estimating beta, the data may be unrepresentative of the current market risk of the security.

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Definitions:

Forcibly Raped

A criminal act involving the non-consensual sexual intercourse achieved through physical force, threat, or intimidation.

Incapacitated

A state in which an individual or entity is unable to act or respond due to injury, illness, or other impairments.

Drugs

Substances used for medical purposes to diagnose, cure, treat, or prevent disease, or otherwise used to alter one's physiological or psychological state.

Alcohol

A chemical compound, specifically ethanol, often consumed as a recreational beverage, and known for its psychoactive and depressant effects.