Which of the Following Statements Is False

question 94

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 volatilities of the security's and market's returns in the future.
• B) It is common practice to estimate beta based on the expectations of future correlations and volatilities.
• C) One difficulty when trying to estimate beta for a security is that beta depends on investors' expectations of the correlation and volatilities of the security's and market's returns.
• D) Securities that tend to move less than the market have betas below 1.

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Definitions:

U.S. Government

The federal government of the United States, consisting of three branches: executive, legislative, and judicial, established to govern the country.

Customers

Individuals or businesses that purchase goods or services from a company.

Billions

A numerical value representing one thousand million (1,000,000,000) in the American counting system.

Personality Characteristics

Traits and attributes that form an individual's distinctive character.