Suppose the Following Equation Best Describes the Evolution of β

Multiple Choice

Suppose the following equation best describes the evolution of β over time:
Β_t= 0.31 + 0.82β_t-1
If a stock had a β of 0.88 last year,you would forecast the β to be _______ in the coming year.

A) 0.88
B) 0.82
C) 0.31
D) 1.03
E) none of the above