The Beta of a Stock Has Been Estimated as 1

question 47

Multiple Choice

The beta of a stock has been estimated as 1.8 using regression analysis on a sample of historical returns. A commonly-used adjustment technique would provide an adjusted beta of

• A) 1.20.
• B) 1.53.
• C) 1.13.
• D) 1.0.

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Definitions:

Intangible Products

Products that cannot be touched or physically measured, including services, digital goods, and intellectual properties.

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within a company, focusing on converting materials and labor into goods and services as effectively as possible.