Which of the Following Will NOT Affect a Firm's Beta

question 6

Multiple Choice

Which of the following will NOT affect a firm's beta?

• A) the choice of the market portfolio against which to compare the variability of a firm's returns
• B) the choice of the risk-free security
• C) the choice of the time period used to calculate the firm's beta
• D) None of the above, because each of them affects the calculation of a firm's beta.

---

Definitions:

Legislation

The process of making or enacting laws, including the preparation and passage of bills through a legislative body.

Congress

The legislative branch of the United States government, responsible for making laws and consisting of two chambers: the Senate and the House of Representatives.

Commercial Speech

Any type of speech or communication used by businesses intended for marketing or commercial purposes, which is protected under certain legal frameworks.

First Amendment

A part of the U.S. Constitution that protects freedoms including speech, religion, press, assembly, and petition.