Which of the following is not true regarding capital market research?
a. Studies have found a low correlation between the variability of accounting earnings and beta.
b. Studies have found a strong association between accounting-based ratios and the market measure of risk.
c. Studies have found that supplemental segment (line of business) disclosures resulted in a revision of systematic risk, indicating that such information is useful for risk assessments.
d. At least one study has found that pension information is not useful for risk assessments.
ANSWER: A
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