Which of the Following Statements Is False

question 64

Multiple Choice

Which of the following statements is false?

• A) Once the characteristic variables have been identified and measured for each firm, the return of each characteristic can be inferred from the data.
• B) Even though the risk and return associated with each characteristic may remain stable, because the characteristics of a firm may change over time, so will the firm's risk and expected return.
• C) Using a long period of time to estimate beta reduces measurement error, but because firms evolve dynamically, old data might not reflect the current risk profile of the firm.
• D) Rather than attempting to estimate the risk and expected return of the firm indirectly, the characteristic variable model of returns views firms as a portfolio of different measurable "characteristics" that together determine the firm's risk and return.

---

Definitions:

Resignation Letter

A formal document that an employee submits to their employer to notify them of their decision to leave their job.

Management Position

A role within an organization that involves overseeing and guiding employees and resources to achieve the company's objectives.

Resignation Letter

A formal notice given by an employee to their employer indicating the employee's intent to leave their current position.

Resignation Notice

Formal notification provided by an employee to their employer indicating their intention to leave their current position.