Researchers frequently estimate beta using
A) the capital asset pricing model.
B) the security market line.
C) the market model.
D) the dividend discount model.

Question

Quizplus · Accepted Answer

The market model is commonly used by researchers to estimate beta, which measures the volatility of a security or portfolio in comparison to the market as a whole. The market model relates the return of a security with the return of the market to estimate beta, whereas the other options are used for different purposes in finance.

Researchers Frequently Estimate Beta Using