Suppose the Following Equation Best Describes the Evolution of β

question 14

Multiple Choice

Suppose the following equation best describes the evolution of β over time:
Β_t= 0.4 + 0.6β_t-1
If a stock had a β of 0.9 last year,you would forecast the β to be _______ in the coming year.

• A)0.45
• B)0.60
• C)0.70
• D)0.94
• E)none of the above

---

Definitions:

Unfreezing Phase

The initial step in the change process where existing behaviors or attitudes are challenged to prepare for new learning or change.

Planned Change

A deliberate effort to improve an organization's operations or processes through structured interventions and strategies.

Changing Phase

A period or stage in a process of transformation or transition from one state or condition to another.

Refreezing Phase

The final stage in the change process where new behaviors or processes are solidified and integrated into normal operations.