Question

Betas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as _________________.

• A. fundamental structure
• B. fundamental adjustment
• C. fundamental betas
• D. fundamental operations

Answer 1

The correct option is C fundamental betas

Betas that are constantly adjusted to reflect changes in capital structure and firms operations are classified as fundamental betas. Fundamental betas can be defined as a measure which helps to determine the potential risk of a security using current and future predicted fundamental information of the company. It includes market related and financial data.