Research by Jeremy Stein of MIT Resolves the Dispute Over

question 31

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 the options was suggested by Stein.

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Definitions:

Molecular Reproduction

The process by which molecules create copies of themselves, fundamental to biological replication and cell division.

Electronegativity

A measure of an atom’s attraction for electrons.

Covalent Bonding

A chemical bond that involves the sharing of electron pairs between atoms, stabilizing them and making the atoms bound together in a molecule.

Protobionts

Assemblages of organic polymers that spontaneously form under certain conditions. Protobionts may have been involved in chemical evolution.