Which of the Following Statements Is FALSE

question 43

Multiple Choice

Which of the following statements is FALSE?

• A)Many practitioners prefer to use average industry betas rather than individual stock betas.
• B)When estimating beta by using past returns it is best to use the longest time horizon of returns available.
• C)The CAPM predicts that a security's expected return depends on its beta with regard to the market portfolio of all risky investments available to investors.
• D)If we use too short a time horizon when estimating beta,our estimate of beta will be unreliable.

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Definitions:

Characteristics

Qualities or features that distinguish an object, person, or phenomenon from others, defining its nature and behavior.

Hoechst Celanese

Hoechst Celanese is a division of Celanese Corporation, a global technology and specialty materials company originally formed as a part of the German chemical company Hoechst AG before restructuring and divestment.

Work Force

The collective group of individuals engaged in employment within an organization or economy.

Diversity

The practice or quality of including or involving people from a range of different social and ethnic backgrounds and of different genders, sexual orientations, etc.