When using historical data there is always the possibility


Which of the following statements is FALSE?

For stocks, common practice is to use at least two years of weekly return data or five years of monthly return data when estimating beta.

When using historical data, there is always the possibility of estimation error.

Evidence suggests that betas tend to revert toward zero over time.

We should be suspicious of beta estimates that are extreme relative to industry norms.

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Financial Management: When using historical data there is always the possibility
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