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Which one of these statements related to beta is correct? Multiple Choice Firm betas have less error than industry betas. Firms should always rely on

Which one of these statements related to beta is correct?

Multiple Choice

  • Firm betas have less error than industry betas.

  • Firms should always rely on their own beta rather than their industry's beta.

  • Beta is unaffected by a firm's capital structure.

  • The sample size used to compute beta may be too small to yield a reliable result.

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