The Beta of a Stock Has Been Estimated as 1

question 32

Multiple Choice

The beta of a stock has been estimated as 1.4 using regression analysis on a sample of historical returns. A commonly-used adjustment technique would provide an adjusted beta of

• A) 1.27.
• B) 1.32.
• C) 1.13.
• D) 1.0.

---

Definitions:

Organizational Structure

Organizational structure outlines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims, defining how job roles and responsibilities are distributed.

Integrator Roles

Positions or responsibilities in an organization that involve coordinating and synthesizing information across different departments to ensure aligned and efficient operations.

Direct Supervision

A management approach where managers closely oversee and control the work of their subordinates, often involving immediate feedback and instructions.

Informal Communication

The unofficial and casual exchange of information between individuals in an organization, outside formal channels.