You Have Measured a Company's Beta for the Last 10

question 18

Multiple Choice

You have measured a company's beta for the last 10 years and it was .8. The adjusted beta to forecast the future would likely be

• A) .7.
• B) .9.
• C) 1.0.
• D) 1.1.

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Definitions:

Ally

A person, group, or nation that is united with another or others for some common purpose or benefit.

Majority Opinion

The judicial opinion agreed to by more than half of the members of a court that sets forth the decision reached in a case.

Asch's Studies

A series of experiments conducted by Solomon Asch focusing on the effects of peer pressure on conformity, demonstrating how individuals yield to or defy a majority group.

Conformity

The act of aligning one's beliefs, behaviors, or attitudes to match those of a group or societal norms.