When Computing a Market Beta Using Historical Returns, How Many

question 49

Multiple Choice

When computing a market beta using historical returns, how many years of data are commonly used?

• A)20-30 years
• B)3-5 years
• C)1-3 years
• D)5-10 years

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Definitions:

Variable on the Vertical Axis

In a graph, the variable that is represented on the vertical (y) axis, which is typically the dependent variable in an analysis.

Variable on the Horizontal Axis

Represents independent variables in graphical representations, typically plotted along the x-axis.

Slope

In mathematics, it refers to the measure of the steepness, incline, or grade of a line, often calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Variable on the Vertical Axis

In graphing data, this refers to the dependent variable that is quantified along the vertical axis of a graph.