Empirical Results Estimated from Historical Data Indicate That Betas _________

question 19

Multiple Choice

Empirical results estimated from historical data indicate that betas _________.

• A) are always close to zero
• B) are constant over time
• C) of all securities are always between zero and one
• D) seem to regress toward one over time

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Definitions:

Qualitative Data

Data that describes qualities or characteristics that cannot be measured with numbers, often involving categories or descriptions.

Quantitative Data

Numerical data that can be measured and quantified, enabling mathematical analysis and statistical operations.

Relative Frequency Histogram

A type of histogram in which each bar represents the proportion or percentage of data points that fall into each of a series of specified classes.

Relative Class Frequency

The fraction or percentage of data points that belong to a specific category or class in relation to the total dataset.