Vidyalelo
Commerce · Q728

Financial Management

Graduate and Post Graduate · Commerce · question 728

Q728

Betas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as

A.
fundamental structure
B.
fundamental adjustment
C.
fundamental betas
Answer
D.
fundamental operations

Answer: Option C

Solution

Answer: Option C
Solution:
Betas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as fundamental betas. Estimate of potential risk, accounting for various factors like company size, volatility, momentum, and such. It facilitates identifying potential risk of a company’s security using current and future (predicted) market-related and financial data.