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I would say that we don't generally speaking assume that stock betas are constant. For example the paper Explanations for the Instability of Equity Beta: Risk-Free Rate Changes and Leverage Effects, from 1985 (!), cites at least six other earlier papers that the marker risk of securities is not stable. Many papers use a rolling window CAPM estimation ...


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Actual securitization would be impractical for a number of reasons, but secondary market transactions of shares in hedge funds do occur with the consent of the funds in question (though it’s not a particularly liquid market). Using these shares as collateral would not generally be practical, as they’re not assignable interests.


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