contestada

To estimate a stock's beta from historical data, we should regress the (excess) return of the stock on the (excess) return of _____.

Respuesta :

Answer:the market portfolio

Explanation:

The beta is simply used to determine the movement of an individual asset when there's a rise or decrease in the entire stock market.

Therefore, to estimate a stock's beta from historical data, we should regress the (excess) return of the stock on the (excess) return of market portfolio.

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