Which of the Following Statements Is False

question 73

Multiple Choice

Which of the following statements is false?

• A) We should be suspicious of beta estimates that are extreme relative to industry norms.
• B) When using historical data, there is always the possibility of estimation error.
• C) Evidence suggests that betas tend to revert toward zero over time.
• D) For stocks, common practice is to use at least two years of weekly return data or five years of monthly return data when estimating beta.

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce phobias and anxiety through gradual exposure to the feared object or situation combined with relaxation exercises.

Emotional Support

Assistance provided through empathy, concern, and encouragement to help individuals manage and express their emotions.

Reinforcer

Anything that follows a response and strengthens it or increases the probability that it will occur.

Behavior Frequency

The number of times a specific behavior is exhibited over a designated period, often used as a measure in behavioral studies.