In: Finance
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.
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