A stock recently has been estimated to have a beta of 1.24: a. What will a beta
Question:
a. What will a beta book compute as the “adjusted beta” of this stock?
b. Suppose that you estimate the following regression describing the evolution of beta over time:
βt = .3 + .7βt-1
What would be your predicted beta for next year?
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a Beta Books adjusts beta by taking the sample est...View the full answer
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