Suppose the Following Equation Best Describes the Evolution of β

question 50

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
• E)none of the above

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Definitions:

Impression Management

Strategies and behaviors individuals use to influence how others perceive them.

Meta-Communication

Communication about communication, which involves discussing or analyzing the way in which information is exchanged, including tone, non-verbal cues, and implicit messages.

Face-Saving

A social or psychological strategy employed to maintain dignity, avoid embarrassment, or preserve reputation after a mistake or failure.

Noise

In communication, unwanted or disruptive sounds that interfere with the reception of the message being sent.