Multiple Choice
Suppose the following equation best describes the evolution of β over time:βt = 0.49 + 0.77βt − 1.If a stock had a β of 0.9 last year, you would forecast the β to be _______ in the coming year.
A) 0.88
B) 0.82
C) 0.31
D) 1.18
Correct Answer:
Verified
Correct Answer:
Verified
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