Which of the Following Statements Is False

Which of the following statements is false?

A) Once the characteristic variables have been identified and measured for each firm, the return of each characteristic can be inferred from the data.
B) Even though the risk and return associated with each characteristic may remain stable, because the characteristics of a firm may change over time, so will the firm's risk and expected return.
C) Using a long period of time to estimate beta reduces measurement error, but because firms evolve dynamically, old data might not reflect the current risk profile of the firm.
D) Rather than attempting to estimate the risk and expected return of the firm indirectly, the characteristic variable model of returns views firms as a portfolio of different measurable "characteristics" that together determine the firm's risk and return.