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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Definitions:

Dismissal Without Notice

A termination of employment where the employer ends the employment relationship without any prior notice to the employee.

Employee Wrongdoing

Actions by an employee that violate company policies or laws.

Serious Breach

A significant violation of a contractual agreement that results in substantial harm or allows the aggrieved party to terminate the contract.

Employment Contract

A legally binding agreement between an employer and an employee outlining the terms and conditions of employment.