Suppose the following equation best describes the evolution of β over time: t = 0.18 + 0.63βt - 1.
If a stock had a β of 1.09 last year, you would forecast the β to be _______ in the coming year.
A) 0.87
B) 0.18
C) 0.63
D) 0.81
Correct Answer:
Verified
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