Rosenberg and Guy Found That __________ Helped to Predict a Firm's

question 20

Multiple Choice

Rosenberg and Guy found that __________ helped to predict a firm's beta.

• A)the firm's financial characteristics
• B)the firm's industry group
• C)firm size
• D)the firm's financial characteristics and the firm's industry group
• E)All of the options

---

Definitions:

Statistical Regression

A phenomenon where extreme scores or outcomes tend to move towards the average over time.

Heuristic Processing

A method of problem-solving, learning, or discovery that employs a practical approach based on experience, immediate context, or a rule of thumb rather than explicit criteria.

Desired Outcomes

The specific results or consequences that an individual or group aims to achieve through their actions or decisions.

Representativeness Heuristic

A mental shortcut that involves judging the probability or frequency of an event by how much the event resembles the typical case.