The Beta of a Stock Has Been Estimated as 1

question 21

Multiple Choice

The beta of a stock has been estimated as 1.8 using regression analysis on a sample of historical returns.A commonly used adjustment technique would provide an adjusted beta of ___________.

• A)1.20
• B)1.53
• C)1.13
• D)1.0
• E)none of the above

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Definitions:

Bromobenzene

An organobromide compound with a formula C6H5Br, used as a precursor in organic synthesis for the introduction of phenyl groups.

Reagents

Chemical substances used in reactions to bring about and probe chemical changes, often to transform reactants into products.

2,2-dimethyloxirane

A type of oxirane with two methyl groups attached to the same carbon atom, used in organic synthesis.

Ethanol

A volatile, flammable, colorless liquid alcohol, used as a solvent, antiseptic, and intoxicant.