Question
You have just estimated the historical beta of a risky security and found that this beta is equal to 0. Indicate which of the following
You have just estimated the historical beta of a risky security and found that this beta is equal to 0. Indicate which of the following statements is most likely correct or incorrect.
The fundamental beta will be higher than the historical beta
[ Choose ] Incorrect Correct
The fundamental beta will be lower than the historical beta
[ Choose ] Incorrect Correct
The historical beta of a risky security cannot be equal to zero
[ Choose ] Incorrect Correct
The volatility of this stock can be greater than zero even if its beta is equal to zero
[ Choose ] Incorrect Correct
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Market Regulations And Finance
Authors: Ratan Khasnabis, Indrani Chakraborty
2014th Edition
8132217942, 978-8132217947
