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.