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With respect to beta, which one of the following statements is correct? A. Firm betas have less error than industry betas. B. Firms should always

With respect to beta, which one of the following statements is correct?

A. Firm betas have less error than industry betas.

B. Firms should always rely on their own beta rather than their industrys beta.

C. Beta is unaffected by a firms capital structure.

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

E. Firm betas rarely vary over time.

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