Estimates of a stock's beta may vary depending on
I. when the estimate was made
II. the standard deviation of the stock's returns
III. how many months of returns were used to estimate the beta
IV. the index used to represent market returns.
A) I, II and IV only
B) II and IV only
C) I, III and IV only
D) I, II and III only

Question

Quizplus · Accepted Answer

Beta estimates can vary based on the time period of the data used (I), the number of months of returns considered (III), and the market index chosen for comparison (IV). The standard deviation of the stock's returns (II) does not directly affect the beta estimate.

Estimates of a Stock's Beta May Vary Depending on