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A stock recently has been estimated to have a beta of 1.42: a. What will a beta book compute as the adjusted beta of this
A stock recently has been estimated to have a beta of 1.42:
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 = 0.5 + 0.5t1 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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