Suppose the Following Equation Best Describes the Evolution of β

question 28

Multiple Choice

Suppose the following equation best describes the evolution of β over time:β_t = 0.36 + 0.85β_{t − 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) 0.87
• D) 0.75

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Definitions:

Procedural Unconscionability

Unconscionability that derives from the process of making a contract.

Excessive Legalese

The use of overly complex and technical legal language that can be confusing and hard to understand for non-experts.

Blue Laws

Laws that restrict or ban certain activities on Sundays, historically to encourage observance of the Sabbath.

Sunday Prohibition

Laws or regulations that prohibit certain activities or operations on Sundays, historically rooted in religious observance but can also include secular motivations.