Which of the Following Statements Is FALSE

question 19

Multiple Choice

Which of the following statements is FALSE?

• A)Diversification benefits are by far the most common justification that bidders give for the premium they pay for a target.
• B)Chief among the costs associated with size is that larger firms are more difficult to manage.
• C)An acquirer might be able to add economic value, as a result of an acquisition, that an individual investor cannot add.
• D)For most investors, an investment in the share market is a zero-NPV investment.

---

Definitions:

Coefficient Of Determination

The coefficient of determination, denoted as R², measures the proportion of the variance in the dependent variable that is predictable from the independent variable(s), indicating the strength of the relationship.

Regression Line

A statistical line of best fit that describes the relationship between one dependent variable and one or more independent variables.

Linear Regression Model

A statistical method for predicting the value of a dependent variable based on the value(s) of one or more independent variables, assuming a linear relationship.

Slope

Refers to the measure of the steepness, incline, or grade of a line, indicating the rate at which the dependent variable changes over the independent variable.