In estimating beta, practical problems arise, which are a function of:
A) The length of time over which the return is calculated.
B) The market index selected.
C) The specific time period used.
D) The number of observations.
E) All of the above.

Question

Quizplus · Accepted Answer

All of the choices listed are practical problems that can arise when estimating beta. The length of time over which the return is calculated, the market index selected, the specific time period used, and the number of observations all can significantly affect the beta estimation, making it a complex and nuanced process.

In Estimating Beta, Practical Problems Arise, Which Are a Function