Which of the following is a concern regarding beta?
A)Using different market proxies will result in different estimates of beta.
B)A company can alter its risk level which may make the beta estimate obsolete.
C)Research indicates that a company's beta does not appear to predict its future return very well.
D)All of these statements are valid concerns regarding beta.

Question

Quizplus · Accepted Answer

All of these statements are valid concerns regarding beta. Different market proxies may yield different estimates of beta, a company's risk level can change over time making the beta estimate obsolete, and research suggests that beta may not reliably predict a company's future return.

Which of the Following Is a Concern Regarding Beta