The Only Way to Estimate a Beta for a Security

question 149

True/False

The only way to estimate a beta for a security is to calculate the covariance of the security with the market.

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Definitions:

Critical Evaluator

A role in decision-making that involves rigorously assessing information, arguments, and outcomes.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Minority Rule

A governance or decision-making process where a smaller portion of a population holds disproportionate power or influence.

Group Decision

The process through which a collection of individuals collectively arrive at a conclusion or choice.