Suppose the following equation best describes the evolution of β over time: βt = 0.31 + 0.82βt - 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
Correct Answer:
Verified
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