Suppose the following equation best describes the evolution of β over time:
Βt= 0.25 + 0.75βt-1
If a stock had a β of 0.6 last year,you would forecast the β to be _______ in the coming year.
A) 0.45
B) 0.60
C) 0.70
D) 0.75
E) none of the above
Correct Answer:
Verified
Q19: Analysts may use regression analysis to estimate
Q20: According to the index model,covariances among security
Q21: Assume that stock market returns do follow
Q22: The beta of Apple stock has been
Q23: Suppose you held a well-diversified portfolio with
Q25: Assume that stock market returns do not
Q26: Suppose the following equation best describes the
Q27: Assume that stock market returns do follow
Q29: Assume that stock market returns do not
Q35: Consider the single-index model. The alpha of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents