Which of the Following Statements Is FALSE

question 91

Multiple Choice

Which of the following statements is FALSE?

• A) There may be reasons to exclude certain historical data as anomalous when estimating beta.
• B) Many practitioners use adjusted betas, which are calculated by averaging the estimated beta with 1.0.
• C) The beta estimated we obtain from linear regression can be very sensitive to outliers, which are returns of unusually small magnitude.
• D) If we use very old data to when estimating beta, they data may be unrepresentative of the current market risk of the security.

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Definitions:

Pulse Oximeter

A non-invasive device that measures the saturation of oxygen in a person's blood.

Hypothermia

A medical emergency that occurs when the body loses heat faster than it can produce it, causing a dangerously low body temperature.

Environmental Exposure

The contact of a person or an organism with substances, conditions, or events in their surroundings that could have an impact on their health.

Noninvasive Electronic

Technologies or devices that do not require insertion into the body to monitor physiological functions.