Which of the Following Is a Concern Regarding Beta

question 73

Multiple Choice

Which of the following is a concern regarding beta?

• A)Using different market proxies will result in different estimates of beta.
• B)A company can alter its risk level which may make the beta estimate obsolete.
• C)Research indicates that a company's beta does not appear to predict its future return very well.
• D)All of these statements are valid concerns regarding beta.

---

Definitions:

Problem-Focused Coping

A strategy used to tackle stress by directly addressing the issue causing the stress.

Earthquake

A sudden and violent shaking of the ground, sometimes causing great destruction, as a result of movements within the earth's crust or volcanic action.

Asian Americans

A diverse group of Americans of Asian descent, which includes people from East Asia, South Asia, Southeast Asia, and other regions.

Anglo-Americans

People whose ancestry originates from English-speaking countries, particularly those living in the United States.