What will a beta book compute as the adjusted beta of this


A stock recently has been estimated to have a beta of 1.42:

a. What will a beta book compute as the “adjusted beta” of this stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Adjusted Beta   

b. Suppose that you estimate the following regression describing the evolution of beta over time: βt = 0.5 + 0.5βt–1 What would be your predicted beta for next year? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

Predicted Beta

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Financial Management: What will a beta book compute as the adjusted beta of this
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