Research by Jeremy Stein of MIT Resolves the Dispute Over

question 162

Multiple Choice

Research by Jeremy Stein of MIT resolves the dispute over whether beta is a sufficient pricing factor by suggesting that managers should use beta to estimate

• A)long-term returns but not short-term returns.
• B)short-term returns but not long-term returns.
• C)both long- and short-term returns.
• D)book-to-market ratios.
• E)None of the above was suggested by Stein.

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Definitions:

Darnall-Preston Complexity Index

A framework used to measure the complexity of projects based on various dimensions such as size, diversity, and uncertainty.

Complexity Index

A measure used to determine the complexity of a system, project, or process, based on various factors such as size, diversity, and interconnectivity.

Project Profiling System

A methodology or tool used to categorize and assess projects based on specific characteristics, risks, and requirements.

Technological Complexity

The degree of challenge presented by the technological aspects of a project or task, taking into account factors like innovation, integration, and the required specialized knowledge.