Which of the following statements is incorrect?
A) Betas are constant.
B) High growth companies tend to have betas much larger than one.
C) Portfolio betas are the weighted average of the betas of the stocks in the portfolio.
D) Betas for companies in the same industry are generally similar, but will exhibit differences based on financial risk, size, and other factors.

Question

Quizplus · Accepted Answer

Betas are not constant; they can change over time due to various factors such as changes in a company's business model, industry dynamics, or overall market volatility.

Which of the Following Statements Is Incorrect