Which of the following is not considered to be an important choice when estimating beta?
A) The choice of the time horizon to use for estimation
B) The choice of method used to extrapolate beta
C) The choice between weekly and monthly returns
D) The choice of index used as the market portfolio

Question

Quizplus · Accepted Answer

While the choice between weekly and monthly returns may impact the precision of the beta estimate, it is not generally considered to be as important as the other choices listed. The choice of time horizon, method of extrapolation, and market portfolio index are all critical factors that can significantly affect the accuracy of the beta estimate. The best choice(s) will depend on the specific circumstances of the analysis and should be carefully considered.

Which of the Following Is Not Considered to Be an Important