Which of the following statements is FALSE?
A)We should be suspicious of beta estimates that are extreme relative to industry norms.
B)When using historical data,there is always the possibility of estimation error.
C)Evidence suggests that betas tend to revert toward zero over time.
D)For stocks,common practice is to use at least two years of weekly return data or five years of monthly return data when estimating beta.

Question

Quizplus · Accepted Answer

Evidence suggests that betas tend to remain stable over time, rather than reverting toward zero.

Which of the Following Statements Is FALSE