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The betas of many firms, such as GE, are reasonably stable over time but betas may change when: the competitive nature of the industry changes
The betas of many firms, such as GE, are reasonably stable over time but betas may change when:
the competitive nature of the industry changes cutting profitability. | ||
firms change their leverage substantially. | ||
the relative relationship to the market changes. | ||
all of the above. |
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