The Beta of a Stock Has Been Estimated as 0

question 44

Multiple Choice

The beta of a stock has been estimated as 0.85 using regression analysis on a sample of historical returns. A commonly-used adjustment technique would provide an adjusted beta of

• A) 1.01.
• B) 0.95.
• C) 1.13.
• D) 0.90.

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Definitions:

Wilcoxon Signed Rank Test

A statistical test that does not rely on parameter-based assumptions to compare two related samples, matched samples, or repeated measures within a single sample to evaluate if there is a difference in their population mean ranks.

Null Hypothesis

In statistical testing, the default hypothesis that there is no significant difference or effect, until evidence suggests otherwise.

Cholesterol Levels

A measure of the total amount of cholesterol in your blood, including low-density lipoprotein (LDL) and high-density lipoprotein (HDL).

Special Diet

A special diet refers to any nutrition plan tailored to meet specific health conditions, allergies, or dietary preferences.