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Which of the following statements is FALSE? o When using historical returns to forecast future betas, we must be mindful of changes in the environment
Which of the following statements is FALSE? o 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. o 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. O U.S. Treasuries are never subject to interest rate risk unless we select a maturity equal to our investment horizon. O Many practitioners analyze other financial characteristics of a firm, when they forecast betas
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