Stepwise Regression Carried Out by Adding Variables to a Multiple

question 55

Multiple Choice

Stepwise regression carried out by adding variables to a multiple regression model until no additional model makes a significant contribution is called ________.

• A)forward selection
• B)backward elimination
• C)general stepwise
• D)parsimony

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Definitions:

Unrealized Holding Gain

The increase in value of an asset that is still held by an entity and has not been sold for a profit.

Trading Security

A financial asset that a company holds primarily for the purpose of selling it in the short term to profit from price changes.

Available-For-Sale Security

A financial asset that is neither classified as held-to-maturity nor held for trading, and the investor intends to sell if needed before its maturity or holding period ends.

Perfectly Matched Hedge

A hedging strategy that entirely eliminates the risk of a particular position by taking an offsetting position in the market.