Suppose the following equation best describes the evolution of $\beta$ over time: $\beta$ _t = 0.18 + 0.63 $\beta$ _t_{- 1}.
If a stock had a $\beta$ of 1.09 last year, you would forecast the $\beta$ to be _______ in the coming year.

Question

Suppose the following equation best describes the evolution of

\beta

over time:

\beta

_t = 0.18 + 0.63

\beta

_t_{- 1}.
If a stock had a

\beta

of 1.09 last year, you would forecast the

\beta

to be _______ in the coming year.

Quizplus · Accepted Answer

The Answer of Suppose the following equation best describes the evolution of $\beta$ over time: $\beta$_t = 0.18 + 0.63$\beta$_t_{- 1}. If a stock had a $\beta$ of 1.09 last year, you would forecast the $\beta$ to be _______ in the coming year. A)0.87 B)0.18 C)0.63 D)0.81

Suppose the Following Equation Best Describes the Evolution Of β\betaβ Over Time

Suppose the Following Equation Best Describes the Evolution Of $\beta$ Over Time