Question
A stock recently has been estimated to have a beta of 1.30: a. What will a beta book compute as the adjusted beta of this
| A stock recently has been estimated to have a beta of 1.30: |
| a. | What will a beta book compute as the adjusted beta of this stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Adjusted beta |
| b. | Suppose that you estimate the following regression describing the evolution of beta over time: |
| t = 0.6 + 0.4t1 | |
| What would be your predicted beta for next year? (Do not round intermediate calculations. Round your answer to 3 decimal places.) |
| Predicted beta |
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
10th edition
133052311, 978-0133052312
