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Management · Q703

Financial Management

Graduate and Post Graduate · Management · question 703

Q703

Future beta is needed to calculate in most situations is classified as

A.
historical betas
Answer
B.
adjusted betas
C.
standard betas
D.
varied betas

Answer: Option A

Solution

Answer: Option A
Solution:
Future beta is needed to calculate in most situations is classified as historical betas. A beta coefficient is a measure of the volatility, or systematic risk, of an individual stock in comparison to the unsystematic risk of the entire market.