When a similar company can't be found to use in estimating a divisional beta, the division's own records can sometimes be used instead. This method is called:
A)pure play.
B)CAPM.
C)accounting beta.
D)financial accounting.

Question

Quizplus · Accepted Answer

This method is called accounting beta, which uses a division's own financial records to estimate its beta when there are no comparable companies available for comparison.

When a Similar Company Can't Be Found to Use in Estimating