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Basic Question 9 of 11

The estimate of beta depends upon the ______.

I. time period used for estimation
II. market proxy used for M
III. number of observations used
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User Contributed Comments 1

User Comment
edushyant Probably length of period (I) is of importance. If the data over short time period is used, beta estimates may be affected by special events during that period.
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Lina

Lina

Learning Outcome Statements

calculate and interpret beta

CFA® 2025 Level I Curriculum, Volume 2, Module 2.