Briefly Explain How the Beta of a Stock Is Estimated

question 9

Essay

Briefly explain how the beta of a stock is estimated.

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Definitions:

Dominating Influence

A significant impact or control over individuals or situations, often leading to a position of authority.

Authority

The legitimate power given to an individual or a body to make decisions and enforce obedience.

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Operative

Relating to or involved in the functioning of operations or activities within an organization or system.