CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

The estimate of beta depends upon the ______.

I. time period used for estimation
II. market proxy used for M
III. number of observations used
Correct Answer: I, II and III

Each of these issues is not addressed in the theory, but they all affect the actual estimate of beta.

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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