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:

Expense-Related Activities

Actions or operations that incur costs or expenses in the course of business operations or project execution.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

A financial performance measure that calculates a company's profitability before deductions for interest, taxes, depreciation, and amortization.

Net Income

Indicates what is left after all costs, expenses, and taxes have been paid.

Current Assets

Cash and other assets that can be converted into cash within a year.