Which of the Following Statements Is False

question 77

Multiple Choice

Which of the following statements is false?

• A) We estimate stock betas in practice by regressing future stock returns on returns of the market portfolio.
• B) In practice the S&P/TSX Composite Index is used as the market proxy in Canada and the S&P 500 is used in the United States.
• C) From recent historical data from Statistics Canada, we can estimate the S&P/TSX Composite Index dividend yield to be about 2.4%.
• D) When evaluating international stocks, it is common practice to use a specific country index or international market index.

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Definitions:

True Differences

Genuine or actual disparities observed between groups or conditions in a study, as opposed to those arising from experimental error or bias.

Discriminant Validity

The degree to which a measurement tool is not correlated with variables from which it should theoretically differ.

Significant Correlations

Statistical relationships between two variables where the association is strong enough to not likely be due to chance.

Constructs

Abstract concepts or theoretical entities that are devised to explain patterns in research, such as intelligence, motivation, or happiness, which are not directly observable.