If a Firm's Beta Was Calculated as 0

question 3

Multiple Choice

If a firm's beta was calculated as 0.6 in a regression equation, a commonly-used adjustment technique would provide an adjusted beta of

• A) less than 0.6 but greater than zero.
• B) between 0.6 and 1.0.
• C) between 1.0 and 1.6.
• D) greater than 1.6.
• E) zero or less.

---

Definitions:

Reaction Formation

A defense mechanism where an individual expresses feelings that are the opposite of their unconscious desires.

Phallic Stage

A stage in Freudian psychosexual development occurring roughly between the ages of three and six, where the libido is focused on the genital area.

Personal Unconscious

A term by Carl Jung referring to all information that is present within an individual’s mind, but not readily available to conscious awareness.

Unconscious

For Freud, the primary motivating force of human behavior, containing repressed memories as well as instincts, wishes, and desires that have never been conscious.