Using a shorter estimation period will tend to improve the accuracy of a beta calculation.

Name: Using a shorter estimation period will tend to improve the accuracy of a beta calculation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Using a shorter estimation period will limit the amount of data used in the calculation, potentially leading to more volatility and less accuracy in the beta calculation. A longer estimation period allows for a larger sample size and more stable estimates.

Using a Shorter Estimation Period Will Tend to Improve the Accuracy