Investors are interested in knowing whether estimates of stock betas based on past history are good predictors

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Investors are interested in knowing whether estimates of stock betas based on past history are good predictors of future betas. How could you use a data set that gives monthly returns on several stocks over a 5-year period to see whether this is true?

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To assess whether estimates of stock betas based on past history are good predictors of future betas you can use a data set that provides monthly retu...View the full answer

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Ma Kristhia Mae Fuerte

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