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5. Beta is widely available. What are weaknesses of using beta as a measure of market risk? a. It is based on historic volatility, which
5. Beta is widely available. What are weaknesses of using beta as a measure of market risk?
a.
It is based on historic volatility, which can change in the future.
b.
Beta can be different depending upon what index a company's stock price is
compared.
c.
Beta is calculated over an arbitrary period of time in the past. Different time periods
and result in different betas.
d.
All of the above.
e.
A&B only.
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