Suppose the Following Equation Best Describes the Evolution of β

question 1

Multiple Choice

Suppose the following equation best describes the evolution of β over time: β_t = 0.25 + 0.75β_{t - 1}.
If a stock had a β of 0.6 last year, you would forecast the β to be _______ in the coming year.

• A) 0.45
• B) 0.60
• C) 0.70
• D) 0.75

---

Definitions:

Reflexive Behavior

Automatic, unconscious actions or responses to specific stimuli, without the involvement of conscious thought.

Breast-Fed

The action of feeding a baby with milk directly from the mother's breast.

Newborn

A baby from birth to a few weeks old, characterized by rapid physiological changes and development.

Motor Development

Refers to the progression of muscular coordination required for physical activities.