For Which of the Following Models Is Beta the Slope

question 32

Multiple Choice

For which of the following models is beta the slope term?

• A) Risk-free model
• B) CAPM
• C) CML
• D) Market model

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Definitions:

Phi Coefficient

A metric indicating the strength and direction of the relationship between two dichotomous variables, with values spanning from -1 to 1.

Partial Correlation

A measure of the relationship between two variables, controlling for the effect of one or more other variables.

Mediating Variable

A variable that explains the relationship between the independent variable and the dependent variable in a statistical model.

Coefficient Of Determination

The amount of variance in one variable that is accounted for by the variance in another variable.