Suppose the Following Equation Best Describes the Evolution of β

question 9

Multiple Choice

Suppose the following equation best describes the evolution of β over time: β_t = 0.4 + 0.6β_{t - 1}.
If a stock had a β of 0.9 last year, you would forecast the β to be _______ in the coming year.

• A) 0.45
• B) 0.60
• C) 0.70
• D) 0.94

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A reduction in expenses, achieving the same outcomes but at a lower cost.

Federal Trade Commission (FTC)

A federal agency established to prevent anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education.

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