Which of the Following Is Not True of the Statistical

question 152

Multiple Choice

Which of the following is not true of the statistical discrepancy in the balance of payments?

• A)It is residual.
• B)It is a measure of net error in the balance of payments data.
• C)It is necessary because some transactions go unreported.
• D)An excess of credits in all other accounts must be offset by equivalent debits in the statistical discrepancy account.
• E)A difference between credits and debits is taken care of by changes in the official reserve transaction account.

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Definitions:

Risk-Free Rate

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

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates that the stock is more volatile than the market, while a beta below 1 indicates it is less volatile.

Unadjusted Beta

Unadjusted beta is the raw beta value of a security or portfolio without any adjustments for its specific risks and characteristics, typically used as a measure of its volatility against the market.

Adjusted Betas

Betas that have been modified to account for the tendency of a stock's market risk measure to regress towards the mean over time, used in finance to predict future betas.