Which of the Following Statements Is False

question 21

Multiple Choice

Which of the following statements is false?

• A)It is difficult to isolate which part of past deposits and loan fluctuations is due to cyclical liquidity.
• B)Forecasting future liquidity needs based on past patterns is always risky due to changes in seasonal patterns, regulation and economic conditions.
• C)Liquidity planning tools typically ignore cyclical liquidity needs and liquidity needs due to FI confidence crises.
• D)None of the listed options are correct.

---

Definitions:

Simple CAPM

A model that describes the relationship between the risk of a security and its expected return, based on the premise that markets are efficient.

Risk-free Rate

The theoretical return on an investment with zero risk, typically represented by the yield on government bonds.

Expected Return

The expected return is the anticipated average return on an investment, considering both the probability of each outcome and the return of each outcome.

Risk-free Rate

The theoretical rate of return on an investment with zero risk, typically represented by government bonds.