A) adjusted stock
B) adjusted beta
C) adjusted coefficient
D) adjusted risk
✅ ANSWER: B
An attempt to make correction by adjusting historical beta to make it closer to an average beta is classified as adjusted beta. The Adjusted Beta is an estimate of a security’s future Beta.
An attempt to make correction by adjusting historical beta to make it closer to an average beta is classified as adjusted beta. The Adjusted Beta is an estimate of a security’s future Beta.