Schweser pg 325 Support for the hypothesis question hypothesis, conclusion, question, support, higher

slackeranalyst

Hi,
On pg 325 of Schweser’s Book 1, it says “we have support for the hypothesis that betas are lower as a result of deregulation…” how did Schweser come up with that conclusion? Can’t it be the other way, betas are higher as a result of deregulation?
How to tell bascailly?

giorgio10

Thanks,
however as written on pg 323, the next phrase “they may increase because there i smore uncertainy regarding competition in the industry” ? why not say the conclusion was higher then?
My reasoning for it is that because it fall sin the rejection region to the right, meaning difference in beta is positive thus beta may be decline.