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Suppose the Following Equation Best Describes the Evolution of β

Question 68

Multiple Choice

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


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

Correct Answer:

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