Question

Empirical results estimated from historical data indicate that betas _________.A. are always close to zeroB. are constant over timeC. of all securities are always between zero and 1D. seem to regress toward 1 over time

Answer 1

Answer: D. Seem to regress toward 1 over time.

Step-by-step explanation:

Empirical results are proven facts with scientific evidence. Betas tend to change over an estimated period. They regress toward 1 over time. Therefore, other options are wrong.