It is generally more accurate to estimate an "industry beta" for a portfolio of companies in the same industry than to estimate beta for a single company.

Question

Quizplus · Accepted Answer

Estimating an industry beta provides a better approximation of systematic risk for a group of companies in the same industry, as opposed to relying on the beta of a single company which can be influenced by company-specific factors.

It Is Generally More Accurate to Estimate an "Industry Beta