Suppose the Following Equation Best Describes the Evolution Of $\beta$ Over Time

Multiple Choice

Suppose the following equation best describes the evolution of $\beta$ over time: $\beta$ _t = 0.30 + 0.70 $\beta$ _t - ₁
If a stock had a $\beta$ of 0.82 last year, you would forecast the $\beta$ to be _______ in the coming year.

A) 0.91
B) 0.77
C) 0.63
D) 0.87