Which of the Following Statements Is FALSE

question 50

Multiple Choice

Which of the following statements is FALSE?

• A) Securities that tend to move more than the market have betas higher than 0.
• B) Securities whose returns tend to move in tandem with the market on average have a beta of 1.
• C) Beta corresponds to the slope of the best fitting line in the plot of the securities excess returns versus the market excess return.
• D) The statistical technique that identifies the bets-fitting line through a set of points is called linear regression.

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