Which of the following statements is incorrect regarding how beta is calculated?
A) The company return is the independent variable.
B) The market portfolio return is the dependent variable.
C) Using the oldest data possible will yield the most accurate results.
D) All of the statements are incorrect.

Question

Quizplus · Accepted Answer

Beta is calculated using the market return as the independent variable and the company return as the dependent variable. The accuracy of beta does not solely depend on using the oldest data possible; more recent, relevant data may provide a more accurate measure.

Which of the Following Statements Is Incorrect Regarding How Beta