In general,a subjective assessment of betas and projects is preferred to the pure play approach.

Name: In general,a subjective assessment of betas and projects is preferred to the pure play approach.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

The pure play approach, which involves using the beta of a comparable, publicly traded company or project to estimate the beta of a new project, is generally preferred for its objectivity and reliance on market data, as opposed to subjective assessments which can be biased and less accurate.

In General,a Subjective Assessment of Betas and Projects Is Preferred