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:

Newlands Reclamation Act

A 1902 U.S. law that funded irrigation projects for the arid lands of 20 states in the American West, aiming to encourage agriculture through water management.

Riparian Rights

Legal entitlements of landowners to access and use water from a river, stream, or other watercourse flowing adjacent to their land.

Conservation Movement

A social and political effort aimed at preserving, protecting, and restoring the natural environment from degradation and exploitation.

Forest Reserves

Public lands set aside to preserve forest ecosystems, protect watersheds, and support biodiversity conservation.