Question: A stock recently has been estimated to have a beta of 1.24: a. What will a beta book compute as the adjusted beta of this

A stock recently has been estimated to have a beta of 1.24:
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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