A Proxy Beta Is

question 89

Multiple Choice

A proxy beta is:

• A)the average beta of firms that are only engaged in the proposed new line of business.
• B)the industry average beta that is used in lieu of the firm's beta because the firm has not existed long enough to have a beta calculated.
• C)the beta used when the firm has a great deal of business risk.
• D)None of these answers is correct.

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Definitions:

Neurons

Specialized cells within the nervous system that transmit information to other neurons or cells through electrical and chemical signals.

Young-Helmholtz Theory

A theory of color vision that proposes the eye contains three types of color receptors, which are sensitive to red, green, and blue.

Primary Color

One of a small group of colors (typically red, green, and blue for light or cyan, magenta, and yellow for pigment) that can be combined to create a full spectrum of colors.

Trichromatic Analysis

A theory of color vision based on the idea that the eye contains three types of color receptors, sensitive to red, green, and blue light.