Suppose the Following Equation Best Describes the Evolution of β

question 11

Multiple Choice

Suppose the following equation best describes the evolution of β over time:_t = 0.15 + 0.72β_{t − 1}.If a stock had a β of 1.05 last year, you would forecast the β to be _______ in the coming year.

• A) 0.91
• B) 0.18
• C) 0.63
• D) 0.81

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Definitions:

Hawaiian System

In kinship terminology, a system in which all relatives of the same sex and generation are referred to by the same kin term; also known as the generational system.

Unilineal Descent System

A system of kinship tracing descent exclusively through either the male or female line, but not both.

Descent System

A way of tracing kinship and inheritance through either the maternal or paternal line.

Mode of Subsistence

Refers to the means by which a society obtains its basic needs for survival, such as through hunting, gathering, agriculture, or industry.