What is the main disadvantage of using daily returns to


What is the main disadvantage of using daily returns to estimate the firm’s Beta?

a. The data is not available to the public

b. Daily returns are inconsistent with the theoretical model

c. Daily returns are computed only on a Monday through Friday basis, and weekends (when markets are closed) renders the model useless

d. Daily returns are “noisy” and provide less explanatory power than longer-term measures.

e. The true value of a firm’s Beta changes on a daily basis.

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Financial Management: What is the main disadvantage of using daily returns to
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