Calculated betas when they give different information

Calculated betas give different information if they are acquired by using weekly, monthly or daily data.

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Since betas calculated with historical data as follows:

1) Change many from one day to other;

2) Depend upon that stock market index was considers as a reference;

3) Depend many on which historical period (as 5 years, 3 years…) is used in the computation;

4) Depend on that returns (as monthly, yearly…) are used in the computations;

5) We do not know whether they are higher or lower than the betas of other companies and

6) They have almost no concern to the posterior return of the shares. The correlation of the regressions also which are used in the computation of betas is almost always very low.

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