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You are analyzing a stock. Researching its historical beta, you find high values ranging between 1.7-1.8. When

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You are analyzing a stock. Researching its historical beta, you find high values ranging between 1.7-1.8. When you regress the stock's historical monthly returns on the S&P 500 index you estimate the stock's beta at 1.7. Should you consider making any adjustments to the stock's beta when you estimate its CAPM required return?
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Research shows that for many stocks unusually high above 13 or low below 07 betas tend ...View the full answer


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