Which of the Following Statements Is False

question 71

Multiple Choice

Which of the following statements is false?

• A) The CAPM remains the predominant model used in practice to determine the equity cost of capital.
• B) Low beta stocks have tended to perform somewhat better than the CAPM predicts.
• C) The empirically estimated security market line is somewhat steeper than that predicted by the CAPM.
• D) Some evidence suggests that the market risk premium has declined over time.

---

Definitions:

Trait Leadership Perspective

A theory that suggests leaders possess certain inherent personality traits or characteristics that distinguish them from non-leaders.

Maternity Leave Policies

Regulations and standards established by organizations or governments that allow mothers to take time off work in the period surrounding childbirth or adoption.

Papua New Guinea

An Oceanian country that occupies the eastern half of the island of New Guinea and its offshore islands in Melanesia, a region of the southwestern Pacific Ocean.

Suriname

A country located on the northeastern coast of South America, known for its diversity in cultures, languages, and ecological systems.