In Question 2 of the following topic test for Equity section, why do they use the beta of the World Index as the proxy instead of the beta from the South Africa Index?
In the description right above the problem, it even states that it uses the South Africa Index as the proxy? Is this an error? The answer explanation shows that the answer is 0.95.
I missed this one as well…I think it’s a more poory worded one, but
We are given the Beta of the Index to the world, and he says he is using that proxy “relative to the world” is the last part of the sentence.
but it also states “Kim decides to use the South Africa Basic Materials Index as a proxy to estimate the beta of Krantz relative to the MSCI World Index”…wth? how freakin misleading is this description…