You obtain beta estimates of General Electric from two different online sources and you are surprised to find that they are so different. Which of the following would NOT be a correct explanation for the difference?
A) One source used weekly data and another used monthly data.
B) One source used the S&P 500 for a market proxy and the other used the Dow Jones Industrial Average.
C) One used regression analysis and the other used geometric analysis.
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

Regression analysis and geometric analysis are both methods for estimating beta. The difference in beta estimates is likely due to the different methods used, not the data or market proxy.

You Obtain Beta Estimates of General Electric from Two Different