Future beta is needed to calculate in most situations is classified as____________?
Correct answer: A. Historical betas
- A. Historical betas
- B. Adjusted betas
- C. Standard betas
- D. Varied betas
Explanation
Because future beta cannot be observed directly, analysts commonly estimate it using the stock's historical beta. Historical data provide the starting point for forecasting future systematic risk.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
Beta reflects stock risk for investors which is usually_________?
Difference between actual return on stock and predicted return is considered as___________?
If book value is greater than market value comparison with investors for future stock are considered as_______________?
Money lends to corporations by banks is classified as___________?
Market where market makers keep record of stock of financial instruments is classified as_________________?
Transfer through institutions such as mutual funds or banks are classified as________________?