Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) We estimate stock betas in practice by regressing future stock returns on returns of the market portfolio.
B) In practice the S&P/TSX Composite Index is used as the market proxy in Canada and the S&P 500 is used in the United States.
C) From recent historical data from Statistics Canada, we can estimate the S&P/TSX Composite Index dividend yield to be about 2.4%.
D) When evaluating international stocks, it is common practice to use a specific country index or international market index.