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Suppose the Following Equation Best Describes the Evolution of β

Question 70

Multiple Choice

Suppose the following equation best describes the evolution of β over time:
Βt= 0.18 + 0.63βt-1
If a stock had a β of 1.09 last year,you would forecast the β to be _______ in the coming year.


A) 0.87
B) 0.18
C) 0.63
D) 0.81
E) none of the above

Correct Answer:

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