CFA Practice Question

There are 57 practice questions for this study session.

CFA Practice Question

The beta of Microsoft stock has been estimated as 1.5 by Merrill Lynch using regression analysis on a sample of historical returns. The Merrill Lynch adjusted beta of Microsoft stock would be

A. 1.5.
B. 1.0.
C. 1.33.
Correct Answer: C

(2/3) * sample beta + 1/3 = 1.33.

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