Which of the Following Statements Is False

question 71

Multiple Choice

Which of the following statements is false?

• A) The CAPM remains the predominant model used in practice to determine the equity cost of capital.
• B) Low beta stocks have tended to perform somewhat better than the CAPM predicts.
• C) The empirically estimated security market line is somewhat steeper than that predicted by the CAPM.
• D) Some evidence suggests that the market risk premium has declined over time.

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Definitions:

Dose-response Relationship

The correlation between the dose of a substance or intensity of an exposure and the magnitude of the organism's response.

Epidemiologists

Scientists who study the patterns, causes, and effects of health and disease conditions in defined populations.

Behavior A

A specific observable action or set of actions performed by an individual.

Negative Relationship

A connection between individuals or entities characterized by adverse interactions, lack of support, or conflict.