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:

Lymphoid Tissue

Specialized connective tissue in the lymphatic system containing large numbers of lymphocytes, involved in immune responses.

Fibrous Connective Tissue

A type of connective tissue rich in collagen fibers that provide high tensile strength and support to various structures of the body.

Internal Organs

Essential parts of an organism located within its body cavity that perform various vital functions.

Epithelial Tissue

A type of tissue that lines the outer surfaces of organs and blood vessels, as well as the internal surfaces of cavities in many internal organs.