The most reliable method to calculate beta is to use 'raw' return data rather than 'excess' return data because the choice of risk- free rate makes the 'excess return' data too subjective in nature.

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The most reliable method to calculate beta typically involves using 'excess' return data rather than 'raw' return data because excess returns (the return of the asset minus the risk-free rate) account for the time value of money and risk premium, providing a more accurate measure of systematic risk relative to the market.

The Most Reliable Method to Calculate Beta Is to Use