Which of the Following Is NOT Considered to Be an Important

question 32

Multiple Choice

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

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Definitions:

Matched-Pairs Sample

A study design where subjects are paired based on certain characteristics, and each pair is treated differently to study effects of a variable.

Interval Data

A type of numerical data where the distance between two points is meaningful, including temperatures and dates.

Matched Pairs

An experimental design method where pairs of subjects are matched based on certain criteria to control for confounding variables.

Normally Distributed

Describing a dataset whose distribution of values forms a bell-shaped curve, with most of the values clustering around a central mean value.