If a Firm's Beta Was Calculated as 0

question 5

Multiple Choice

If a firm's beta was calculated as 0.8 in a regression equation, a commonly-used adjustment technique would provide an adjusted beta of

• A) less than 0.8 but greater than zero.
• B) between 1.0 and 1.8.
• C) between 0.8 and 1.0.
• D) greater than 1.8.
• E) zero or less.

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Definitions:

Projecting

A defense mechanism where one attributes one's own unacceptable thoughts or feelings to others.

Identifying

The process of recognizing and labeling specific elements or characteristics as belonging to a certain category.

Sublimating

Sublimating is a defense mechanism proposed by Freud where negative urges and impulses are converted into socially acceptable behaviors.

Displacing

Redirecting emotional impulses from a primary target to a secondary target that is considered less threatening or more acceptable.