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The Beta of a Stock Has Been Estimated as 1

Question 21

Multiple Choice

The beta of a stock has been estimated as 1.8 using regression analysis on a sample of historical returns.A commonly used adjustment technique would provide an adjusted beta of ___________.


A) 1.20
B) 1.53
C) 1.13
D) 1.0
E) none of the above

Correct Answer:

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