The Beta of a Stock Has Been Estimated as 0

question 44

Multiple Choice

The beta of a stock has been estimated as 0.85 using regression analysis on a sample of historical returns. A commonly-used adjustment technique would provide an adjusted beta of

• A) 1.01.
• B) 0.95.
• C) 1.13.
• D) 0.90.

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Definitions:

Socialization Processes

The means by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society.

Holistically

An approach that considers the whole system, including all of its parts and their interactions, rather than focusing on individual components.

Collectivist Cultures

Societies that emphasize the needs and goals of the group as a whole over the needs and wishes of each individual.

Holistically

An approach or method of considering or treating something as a whole, rather than focusing on individual parts or aspects.