CFA Practice Question

There are 57 practice questions for this study session.

CFA Practice Question

Which statement(s) is (are) true regarding adjusted Beta?

I. The mean-reverting level of the beta is 0.
II. If the historical beta is greater than 1, the adjusted beta (as calculated by the Merrill Lynch's equation) will be more than the historical beta.
Correct Answer: None of them

I. It is 1. II. It will be less than the historical beta.

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