Betas May Vary Substantially Across an Industry

Betas may vary substantially across an industry. The decision to use the industry or firm beta to estimate the cost of capital depends on:

A) how small the estimation errors are of all betas across industries.
B) how similar the firm's operations are to the operations of all other firms in the industry.
C) whether the company is a leader or follower.
D) the size of the company's public float.
E) None of these.