Refer to the separation of market- wide and firm- specific (i. e., abnormal) security returns as shown

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Refer to the separation of market- wide and firm- specific (i. e., abnormal) security returns as shown in Figure 5.2. Which factors could reduce the accuracy of the estimate of firm- specific returns?

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Financial Accounting Theory

ISBN: 978-0132984669

7th edition

Authors: William R. Scott

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Question Posted: Sep 09, 2014 11:10 AM

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Refer to the separation of market- wide and firm- specific (i. e., abnormal) security returns as shown

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One factor that could adversely affect the accuracy of the estimate of abnormal returns is the estimate of beta particularly if the firms beta changes ...View the full answer

Financial Accounting Theory

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