Research by Jeremy Stein of MIT Resolves the Dispute Over

question 15

Multiple Choice

Research by Jeremy Stein of MIT resolves the dispute over whether beta is a sufficient pricing factor by suggesting that managers should use beta to estimate

• A) long-term returns but not short-term returns.
• B) short-term returns but not long-term returns.
• C) both long-and short-term returns.
• D) book-to-market ratios.
• E) None of these was suggested by Stein.

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