Studies indicate that neither firm size nor the time interval used is important when computing beta.

Name: Studies indicate that neither firm size nor the time interval used is important when computing beta.
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Question

Quizplus · Accepted Answer

Studies have shown that both firm size and the time interval used can significantly impact the computed beta of a stock. Larger firms often have more stable betas, and the length of the time interval can affect the volatility and thus the beta calculation.

Studies Indicate That Neither Firm Size nor the Time Interval