Suppose the Following Equation Best Describes the Evolution of β

question 70

Multiple Choice

Suppose the following equation best describes the evolution of β over time:
Β_t= 0.18 + 0.63β_t-1
If a stock had a β of 1.09 last year,you would forecast the β to be _______ in the coming year.

• A)0.87
• B)0.18
• C)0.63
• D)0.81
• E)none of the above

---

Definitions:

Restructuring Plans

Strategies implemented by organizations to significantly change the financial and operational aspects in order to improve business performance and efficiency.

Strategic Human Resource Management

The proactive management of people, aligning the workforce with the strategic objectives of the company.

HRM Process

The series of systematic steps undertaken by a human resources department to recruit, hire, manage, and develop a company's employees.

Human Capital

Represents the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.