Analysts May Use Regression Analysis to Estimate the Index Model

question 27

Multiple Choice

Analysts may use regression analysis to estimate the index model for a stock. When doing so, the slope of the regression line is an estimate of

• A) the α of the asset.
• B) the β of the asset.
• C) the σ of the asset.
• D) the δ of the asset.

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Definitions:

GATT

GATT, or the General Agreement on Tariffs and Trade, was a legal agreement created in 1947 to minimize barriers to international trade by eliminating or reducing quotas, tariffs, and subsidies while preserving significant regulations.

International Migration

The movement of individuals across national borders for the purpose of settling in a new country, either temporarily or permanently.

World Output

The total value of all goods and services produced across the globe.

Illegal Immigrants

People who have entered a country unlawfully to reside there; also called unauthorized immigrants.