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

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An industry beta is calculated using a portfolio of companies in the same industry, which allows for a more accurate estimate of the overall risk within the industry. A beta estimate for a single company may not accurately reflect the overall risk of the industry and can be influenced by company-specific factors.

Generally, an Industry Beta, Calculated from a Portfolio of Companies