Which of the Following Techniques Is Used to Predict the Value

question 35

Multiple Choice

Which of the following techniques is used to predict the value of one variable on the basis of other variables?

• A)Correlation analysis
• B)Coefficient of correlation
• C)Covariance
• D)Regression analysis

Identify the appropriate measures of risk for different investment decisions.

Analyze the impact of correlation between assets on portfolio diversification.

Understand the risk-return trade-off for risk-averse investors.

Calculate the required rate of return for investments using the Capital Asset Pricing Model (CAPM).

---

Definitions:

Cognitive Component

The aspect of attitude that consists of beliefs and knowledge about a subject.

Affective Component

Part of an attitude that involves an individual’s feelings or emotions about the attitude object.

Behavioural Component

Aspects of psychology that involve observable actions and responses of individuals or organisms in their environment.

Richard LaPiere

A social psychologist known for his work in attitudes, particularly the attitudes-behavior discrepancy demonstrated through his landmark study on racial discrimination.