The Beta of Amazon Stock Has Been Estimated as 2

question 57

Multiple Choice

The beta of Amazon stock has been estimated as 2.6 using regression analysis on a sample of historical returns. A commonly-used adjustment technique would provide an adjusted beta of

• A) 2.20.
• B) 2.07.
• C) 2.13.
• D) 1.66.

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Definitions:

Excise Tax

A tax levied on the sale of specific goods and services, such as tobacco, alcohol, and gasoline.

Demand Curve

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A loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is unachievable.