Which of the Following Statements Is False

question 14

Multiple Choice

Which of the following statements is false?

• A) The CAPM states that we should use the risk-free interest rate corresponding to the investment horizon of the firm's investors.
• B) To determine the risk premium for a stock using the security market line, we need an estimate of the market risk premium.
• C) When surveyed, the vast majority of large firms and financial analysts reported using the yields of Treasury Bills to determine the risk-free rate.
• D) The risk-free interest rate is generally determined using the yields of Canadian Treasury securities, which are free from default risk.

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Definitions:

Mental Processes

Internal cognitive operations that include thinking, remembering, learning, and using language.

Schema-Based

Relating to or involving schemas, which are cognitive frameworks or concepts that help organize and interpret information.

Facilitated Communication

A controversial communication technique where a facilitator supports the hand or arm of a nonverbal person to assist them in communication.

Nonconscious

Relates to mental processes that occur without conscious awareness, influencing thoughts, feelings, and behaviors.