Suppose the Following Equation Best Describes the Evolution of β

question 28

Multiple Choice

Suppose the following equation best describes the evolution of β over time:
Β_t= 0.31 + 0.82β_t-1
If a stock had a β of 0.88 last year,you would forecast the β to be _______ in the coming year.

• A)0.88
• B)0.82
• C)0.31
• D)1.03
• E)none of the above

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Definitions:

Time Management

The process of organizing and planning how to divide your time between specific activities to increase efficiency or productivity.

Strategic Plans

Comprehensive frameworks that outline an organization's goals, strategies, and actions to achieve future objectives.

Organization's Vision

A statement outlining what an organization wants to become, providing a clear direction for future growth and defining its aspirations.

Tactical Plans

Short-term, specific plans that are part of a larger strategy or strategic plan, aimed at achieving particular aspects of a goal.