Generally,an industry beta,calculated from a portfolio of companies in the same industry,is more accurate that a beta estimate for a single company.

Question

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A portfolio of companies in the same industry will provide a more accurate measure of the industry's systematic risk, which is reflected in the beta. A single company's beta may be influenced by idiosyncratic factors that are specific to that company and do not reflect the broader industry trends. Therefore, an industry beta is generally considered to be a more reliable estimate of the systematic risk of a company operating in that industry.

Generally,an Industry Beta,calculated from a Portfolio of Companies in the Same