Studies Regarding the "Death of Beta

question 16

Multiple Choice

Studies regarding the "death of beta"

• A) indicate that the reports were premature.
• B) indicate that effect of systematic risk on returns persists after controlling for such variables as market-to-book ratios.
• C) indicate that beta is not a meaningful risk measure.
• D) a and b.
• E) none of these.

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Definitions:

Scoring Model

A statistical tool or algorithm that assesses and assigns scores to individuals or entities based on various attributes or behavior patterns to predict future outcomes.

Attributes

Characteristics or qualities that define or differentiate objects, individuals, or data points.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used as a tool in investment and financial analysis.

IRR Function

Internal Rate of Return function; a financial formula used in capital budgeting to estimate the profitability of potential investments.