A proxy beta is:
A)the average beta of firms that are only engaged in the proposed new line of business.
B)the industry average beta that is used in lieu of the firm's beta because the firm has not existed long enough to have a beta calculated.
C)the beta used when the firm has a great deal of business risk.
D)None of these answers are correct.

Question

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The Answer of A proxy beta is:
A)the average beta of firms that are only engaged in the proposed new line of business.
B)the industry average beta that is used in lieu of the firm's beta because the firm has not existed long enough to have a beta calculated.
C)the beta used when the firm has a great deal of business risk.
D)None of these answers are correct.

A Proxy Beta Is