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Author Question: Which of the following statements is correct? (Read 10 times)

kmcolvin

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Which of the following statements is correct?

If a company with a high-beta stock merges with a low-beta company, the best estimate of the new merged company’s beta is zero.


The beta of the “average stock” or “market” always changes slightly over time, but the average beta is always equal to 1.


During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may not be close to the “true” or “expected future” beta.


If a newly issued stock does not have a past history that can be used as a basis for calculating beta, then we should always estimate that its beta will turn out to be zero. This is especially true if the company finances with more debt than the average firm.



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Marked as best answer by kmcolvin on Aug 7, 2023

JulianneMu

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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kmcolvin

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Reply 2 on: Aug 7, 2023
:D TYSM


jomama

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Reply 3 on: Yesterday
Wow, this really help

 

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