Suppose the Following Equation Best Describes the Evolution Of $\beta$ Over Time

question 70

Multiple Choice

Suppose the following equation best describes the evolution of $\beta$ over time: $\beta$ _t = 0.30 + 0.70 $\beta$ _t - ₁
If a stock had a $\beta$ of 0.82 last year, you would forecast the $\beta$ to be _______ in the coming year.

• A)0.91
• B)0.77
• C)0.63
• D)0.87

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Definitions:

Early Adulthood

A life stage typically occurring from the late teens through the twenties, marked by personal and professional development, and the pursuit of independence.

Physical Development

The biological process of growth and change in the body's structures, including motor and muscular development, throughout the life span.

Motives

Psychologically based forces that underlie an individual's willingness to act or behave in a particular way, driven by needs, desires, or goals.

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The series of jobs and occupations that a person engages in over their working life, which often reflects their interests, skills, and values.