When computing a market beta using historical returns, the preferred returns to use are

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Quizplus · Accepted Answer

Daily returns are the preferred returns to use when computing a market beta using historical returns since they provide the most accurate and detailed information about the market's volatility and movements. Quarterly, monthly, and annual returns would not capture as much of the day-to-day fluctuations in the market, leading to a less accurate estimation of beta. Daily returns are preferred because they capture the most information about the performance of the security being analyzed. Quarterly or annual returns may not capture short-term fluctuations in the market and may not accurately reflect the security's riskiness. Monthly returns may not provide enough granularity in capturing daily market movements.

When Computing a Market Beta Using Historical Returns, the Preferred