Which of the Following Statements Is False

question 16

Multiple Choice

Which of the following statements is false?

• A) Many practitioners analyze other financial characteristics of a firm when they forecast betas.
• B) Canadian Treasuries are never subject to interest rate risk.
• C) If a firm were to change industries, using its historical beta would be inferior to using the beta of other firms in the new industry.
• D) When using historical returns to forecast future betas, we must be mindful of changes in the environment that might cause the future to differ from the past.

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Definitions:

Plagiarism

The act of copying someone else's work, ideas, or expressions without proper acknowledgment or permission.

Quoting

The act of repeating or copying words from another source, typically with acknowledgment to attribute the original speaker or author.

Paraphrasing

Rewording or rearticulating something written or spoken by someone else.

Summarizing

The act of expressing the main points or essence of a larger document or speech concisely.