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Suppose the Following Equation Best Describes the Evolution of β

Question 11

Multiple Choice

Suppose the following equation best describes the evolution of β over time:t = 0.15 + 0.72βt − 1.If a stock had a β of 1.05 last year, you would forecast the β to be _______ in the coming year.


A) 0.91
B) 0.18
C) 0.63
D) 0.81

Correct Answer:

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