Which of the Following Methods Involves Calculating an Average Beta

question 167

Multiple Choice

Which of the following methods involves calculating an average beta for firms in a similar business and then applying that beta to determine the beta of its own project?

• A) Risk premium method.
• B) Pure play method.
• C) Accounting beta method.
• D) CAPM method.
• E) Answers b and c are both correct.

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Definitions:

Red Fill

A formatting option in various software applications that fills an object or cell with a red color.

Green Fill

A feature in spreadsheet and other software tools used to highlight cells with a green background color, often indicating a specific condition or status.

Hidden

In the context of computing, it refers to files, data, or elements that are not visible or accessible to the user under normal circumstances.

Align Cell Contents

Customizing the positioning of data within a cell in spreadsheet programs, such as top, bottom, center alignment, both horizontally and vertically.