Maturity equal to our investment horizon

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Reference no: EM13885469

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.

Reference no: EM13885469

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