Asked by
Deborah Jaeger
on Oct 20, 2024
Verified
An adjusted beta will be ________ than the unadjusted beta.
A) lower
B) higher
C) closer to 1
D) closer to 0
Adjusted Beta
A measure that adjusts a security's beta (volatility relative to the market) based on its historical performance, to provide a more relevant estimation of its future volatility.
Unadjusted Beta
The beta of a stock calculated directly from historical data, without applying any adjustments for its specific characteristics.
- Understand the principle of systematic risk and the role of beta in its quantification.
Verified Answer
KD
Learning Objectives
- Understand the principle of systematic risk and the role of beta in its quantification.