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Capital Market Expectations Quiz

Which of the following is true:

a) Beta research is the development of capital market research.
b) An endogenous variable is determined outside the system.
c) Permanent income hypothesis asserts that consumers' spending behavior is largely determined by current income.

NO EXCUSES

Gosh is all this in the text?? No idea...

Gonna guess A

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B per definitionem

re A: Beta research is the RESULT of capm research IMHO

what's permanent income hypothesis? sounds like leveraging yourself against the wall to buy a beachview condo because you think your income is permanent

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A

B: Exogenous not endogenous.
C: Largely by future income so consumer spending rarely changes in recession.

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Answer is A

NO EXCUSES

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