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Two Researchers Tell You They Study the Same Thing

question 34

Multiple Choice

Two researchers tell you they study the same thing. However, when you look at their research papers, they do not use similar methodologies or measurements. How is this possible?


Definitions:

Cost of Equity

The theoretical compensation a company pays to its equity investors for the risk involved in investing in the firm.

Beta

A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.

Stock Price

The cost of purchasing a share of a company's stock on the stock market.

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