Which of the Following Statements Is Incorrect Regarding How Beta

question 79

Multiple Choice

Which of the following statements is incorrect regarding how beta is calculated?

• A) The company return is the independent variable.
• B) The market portfolio return is the dependent variable.
• C) Using the oldest data possible will yield the most accurate results.
• D) All of the statements are incorrect.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, typically derived from the company's profits.

Basic Earnings

An indicator of a company's profitability, calculated before any deductions are made, representative of the raw financial performance.

Weighted Average

A calculation method where each data point is multiplied by a weight that reflects its importance or frequency before summing them up to a single average value.