Q711
In calculation of betas, an adjusted betas are highly dependent on historical
A.
unadjusted betas
AnswerB.
adjusted historical betas
C.
fundamental historical betas
D.
fundamental varied betas
Answer: Option A
Solution
Answer: Option A
Solution:
In calculation of betas, an adjusted betas are highly dependent on historical unadjusted betas. Betas calculated purely based on historical data are unadjusted betas. However, this beta estimate based on historical estimates is not a good indicator.