Empirical results regarding betas estimated from historical data indicate that

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Question:

Empirical results regarding betas estimated from historical data indicate that

A.

betas are constant over time.

B.

betas of all securities are always greater than one.

C.

betas are always near zero.

D.

betas appear to regress toward one over time.

Answer» d. betas appear to regress toward one over time.

Note: The above multiple-choice question is for all general and Competitive Exams in India.