The Beta of Exxon Stock Has Been Estimated as 1

question 10

Multiple Choice

The beta of Exxon stock has been estimated as 1.6 using regression analysis on a sample of historical returns. A commonly-used adjustment technique would provide an adjusted beta of

• A) 1.20.
• B) 1.32.
• C) 1.13.
• D) 1.40.

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Definitions:

Conservation

The principle in cognitive development that recognizes the amount of a substance remains the same despite changes in its shape or container.

Theory of Mind

A cognitive skill that enables individuals to understand that others have their own thoughts, feelings, and perspectives, distinct from one's own.

Zone of Proximal Development

The range of tasks that are too difficult for an individual to master alone but can be learned with guidance and assistance from a more knowledgeable person.

Schemata

Cognitive structures that help individuals organize and interpret information in the world around them.