Practice mode Finance

What are betas called that are adjusted for their tendency to move towards 1.0 over time?

Correct answer A. Adjusted betas

Explanation

Historical betas tend to revert towards the market average of 1.0, so adjusted betas weight the raw estimate with 1.0 to give a better forecast.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.