Question
Which of the following statements is FALSE? A. U.S. Treasuries are never subject to interest rate risk unless we select a maturity equal to our
Which of the following statements is FALSE?
A. U.S. Treasuries are never subject to interest rate risk unless we select a maturity equal to our investment horizon. | ||
B. | Many practitioners analyze other financial characteristics of a firm, when they forecast betas. | |
C. When using historical returns to forecast future betas, we must be mindful of changes in the environment that might cause the future to differ from the past. | ||
D. If a firm where to change industries, using its historical beta would be inferior to using the beta of other firms in the new industry. |
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