Which of the Following Makes This a True Statement? Ideally,when

question 81

Multiple Choice

Which of the following makes this a true statement? Ideally,when searching for a beta for a new line of business:

• A) one could find other firms engaged in the proposed new line of business and use their betas as proxies to estimate the project's risk.
• B) one would like to find at least three or four pure-play proxies.
• C) two (or even one) proxies might represent a suitable sample if their line of business resembles the proposed new project closely enough.
• D) All the answers make this a true statement.