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Describe why beta estimates can vary from one data-base to another.

Describe why beta estimates can vary from one data-base to another.

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Answer #1

Beta estimates can vary from one data base to another because
1. The Returns of stock vary from one time period to another. Beta might be different if we take 10 years return and will be different if we take 5 years returns.
2. Returns of different stocks could be different in different stock exchanges like NYSE, Nasdaq ,etc. Hence beta could be different.

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