Research by Jeremy Stein of MIT Resolves the Dispute Over

Multiple Choice

Research by Jeremy Stein of MIT resolves the dispute over whether beta is a sufficient pricing factor by suggesting that managers should use beta to estimate

A) long-term returns but not short-term returns.
B) short-term returns but not long-term returns.
C) both long- and short-term returns.
D) book-to-market ratios.
E) None of the options was suggested by Stein.