An Asset's Beta Can Be Estimated by Regressing Its Returns

question 142

True/False

An asset's beta can be estimated by regressing its returns against the returns for the market portfolio.

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Definitions:

Secondary Process Thinking

A concept in psychoanalytic theory referring to the rational and conscious thought processes guided by reality.

Internalization

The process of incorporating the beliefs, attitudes, or values of others into one's own belief system.

Moral Standards

Rules or principles governing what is considered right or wrong behavior.

Superego

In Sigmund Freud’s theory, the internalization of the moral standards of society inculcated by the child’s parents.