Which of the Following Statements Is FALSE

question 59

Multiple Choice

Which of the following statements is FALSE?

• A) The CAPM remains the predominant model use 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:

Canadian Dollar Depreciates

A decrease in the value of the Canadian dollar relative to another currency.

Canadian Imports

pertains to goods and services brought into Canada from other countries, contributing to the country’s supply of products available for consumption and use.

Canadian Customers

Individuals or entities in Canada who purchase goods or services, reflecting the consumer market in that geographical area.

Japanese Yen

The official currency of Japan, known for being one of the most traded currencies in the world.