Which of the following is NOT a reason why two different sources may have different beta...

Which of the following is NOT a reason why two different sources may have different beta values?

A. The market proxy that was used for calculation may have been the S&P500 instead of the Nasdaq

B. 2 years of data may have been used to calculate beta instead of 5 years.

C. Weekly returns may have been used instead of monthly returns

D. Beta is a measure of risk.

Solutions

Expert Solution

The answer is D as diferent Indices like S& P 500 and Nasdaq , different time frames like 2 years or 5 years gives different betas

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Which of the following is not a reason for which a company may purchase treasury stock?...

Which of the following is not a reason for which a company may purchase treasury stock? A. to increase net assets by buying low and selling high B. to avoid a takeover by an outside party by increasing the number of outstanding shares that have voting rights C. to support the company's stock price D. to reward valued employees with stock

Which one of these is the least probable reason why a firm may want to divest...

Which one of these is the least probable reason why a firm may want to divest itself of some of its assets? To cash out a profitable operation To raise cash To improve the strategic fit of its various divisions To comply with antitrust regulations To increase market share

Which of the following is a reason for why we have capital markets? a.they reduce taxes,...

Which of the following is a reason for why we have capital markets? a.they reduce taxes, transaction costs, and agency costs b.they allow individuals to separate their consumption from their income c. they expand individuals current consumption opportunity set d. all of the above statements are true,

Which of the following is NOT a reason that Disability Insurance may be more important than...

Which of the following is NOT a reason that Disability Insurance may be more important than Life Insurance? Disability Insurance will often have a higher capital (lump sum) payout than Life Insurance. The likelihood of becoming disabled during a person's employment years is equal to, or greater than, the likelihood of passing away. When a family's primary income earner becomes disables, expenses may increase. In addition to needing his/her pre-disability income, the disabled person may need special equipment, rehabilitation, or...

What is beta? What is published Beta? How are they different and why?

Describe the reason, why or why not the emittance is different in the horizontal plane and...

Describe the reason, why or why not the emittance is different in the horizontal plane and the vertical plane

Which of the following is not a reason why insurance products are inefficient in a financial...

Which of the following is not a reason why insurance products are inefficient in a financial sense? Search Costs Incomplete Information Overhead Costs Underwriting Costs

Explain why two countries with the same saving rates may have different economic growth rates?

Which of the following is thought to be a reason why some populations of organisms fluctuate...

Which of the following is thought to be a reason why some populations of organisms fluctuate over time? Select all that apply. A changes in weather B the size of the organism and how long it lives C predator-prey interactions D variability in the food supply E whether the organism is r-selected or K-selected

Which of the following is the closest reason why technical analysis is a controversial subject in...

Which of the following is the closest reason why technical analysis is a controversial subject in academia? C. Technical analysis is base on cash flow valuation methods. B. Using technical analysis, the future price is known with certainty. D. Technicians always base their decision on contrary indicators. A. According to the efficient market hypothesis, if the market is efficient, the study of past price movements cannot be used to forecast future price movements in stocks. When you buy an individual...

Subjects