A method for estimating a project's beta that attempts to identify publicly traded firms engage solely in the same business as the project is called the pure play method.

Question

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The given statement is true. The pure play method is a technique used to estimate a project's beta by identifying publicly traded firms that exclusively engage in the same business as the project. By doing so, the method attempts to isolate the risk associated with the project from other risks associated with the firm or the market.

A Method for Estimating a Project's Beta That Attempts to Identify