Answer to Question #20979 in Electric Circuits for Patricia

Question #20979
Which of the following statements is most correct? A Calculating beta coefficients using a calculator is not a legitimate method of estimating beta because it measures changes in an individual security’s return regressed against time. B The general equation: Y = a + bX + e, is the standard form of a simple linear regression where b = beta, and X equals the independent return on an individual security being compared to Y, the return on the market, which is the dependent variable. C The beta coefficient used in the SML equation should reflect the expected volatility of a given share’s return versus the return on the market during some future period. D The CAPM is an ex ante model, which means that all of the variables should be historical values that can reasonably be projected into the future. E All of the above statements are false.
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