Betas do not vary over time and are quite insensitive to the time period and methodology employed in their estimation.

Question

Quizplus · Accepted Answer

Betas can vary over time due to changes in market conditions, company-specific events, and other factors. The methodology used to estimate beta can also affect the results, such as the choice of benchmark index and the time period studied. Therefore, it is not accurate to say that betas are completely stable and insensitive to changes.

Betas Do Not Vary Over Time and Are Quite Insensitive