- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 33. Cost of Capital-Foundational Topics
- Subject 4. Estimating Beta
CFA Practice Question
Which statement(s) is (are) true regarding adjusted Beta?
II. If the historical beta is greater than 1, the adjusted beta will be more than the historical beta.
I. The mean-reverting level of the beta is 0.
II. If the historical beta is greater than 1, the adjusted beta 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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