Which of the following makes this a true statement? Ideally, when searching for a beta for a new line of business.

A.) One could fine other firms engaged in the proposed new line of business and use their betas as proxies to estimate the project's risk.

B.) One would like to find at least three or four pure-play proxies.

C.) Two, or even one, proxies might represent a suitable sample if their line of business resembles the proposed new project closely enough.

D.) All the answers make this a true statement.

Answer rating: 100% (QA)

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