Suppose the Following Equation Best Describes the Evolution of β

question 79

Multiple Choice

Suppose the following equation best describes the evolution of β over time:
Βt= 0.25 + 0.75βt-1
If a stock had a β of 0.6 last year,you would forecast the β to be _______ in the coming year.

• A) 0.45
• B) 0.60
• C) 0.70
• D) 0.75
• E) none of these

---

Definitions:

One-way ANOVA

A statistical examination aimed at finding out whether significant disparities exist among the averages of three or more distinct groups.

Null Hypotheses

A statement used in statistical testing that assumes no effect or no difference between groups or variables, serving as the default statement to be tested against.

Alternative Hypotheses

A statement in statistical analysis that proposes a difference or effect, in contrast to the null hypothesis which suggests no effect or relationship.

Error Mean Square

A measure used in statistics to quantify the average of squares of errors or deviations.