Which of the Following Is Not Considered to Be an Important

question 27

Multiple Choice

Which of the following is not considered to be an important choice when estimating beta?

• A) The choice of the time horizon to use for estimation
• B) The choice of method used to extrapolate beta
• C) The choice between weekly and monthly returns
• D) The choice of index used as the market portfolio

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Definitions:

Risk Factor

An aspect, condition, or behavior that increases the likelihood of suffering harm or adverse effects.

Suicide

The deliberate act of taking one's own life.

Suicide's Unpredictability

The aspect of suicidal behavior that makes it difficult to predict when someone might attempt to take their own life.

Psychological Disorder

A series of psychological or behavioral symptoms that negatively affect several aspects of an individual's life, causing them discomfort.