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:

Freedom of the Press

The right of media to publish content without censorship or restraint by the government.

Rationalism

A philosophical belief that reason is the chief source of knowledge, emphasizing logic and factual analysis.

Great Awakening

A series of religious revivals in the British American colonies during the 18th century, which emphasized personal faith, emotional experience, and the need for revival of religious devotion.

New Lights

A term from the First Great Awakening referring to those who experienced a conversion experience and supported new religious practices, distinguishing them from "Old Lights" who were skeptical of the new revivalist methods.