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Assume that the beta estimated from 120 monthly returns is 1.7 with a standard error 0.2 and that the beta estimated from 24 monthly returns

Assume that the beta estimated from 120 monthly returns is 1.7 with a standard error 0.2 and that the beta estimated from 24 monthly returns is 4 with a standard error of 0.6. Would you recommend using a beta of 1.7 or 4 to estimate the cost of equity of Air New Zealand? Explain why.

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