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.

Question

Quizplus · Accepted Answer

Stein's results suggest that managers should use beta to estimate long-term returns but not short-term returns.

Research by Jeremy Stein of MIT Resolves the Dispute Over