A Linear Regression to Estimate the Relation Between Domino's Pizza

question 1

Multiple Choice

A linear regression to estimate the relation between Domino's Pizza share returns and the market's return gives the best fitting line that represents the relation between the share and the market. The slope of this line is our estimate of

• A) volatility.
• B) alpha.
• C) beta.
• D) risk-free rate.

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Definitions:

Organic Molecules

Molecules that contain carbon and are found in living systems.

Fossil Stromatolites

Ancient, layered bio-chemical structures created by the trapping, binding, and calcification of sedimentary grains by microbial mats of microorganisms, especially cyanobacteria, indicative of early life on Earth.

Cells

Basic structural, functional, and biological units of all living organisms, consisting of a nucleus and cytoplasm enclosed in a membrane.

Mesozoic Era

Span of geologic time commonly known as the Age of Reptiles; divided into Triassic (252–201 mya), Jurassic (201–145 mya), and Cretaceous (145–66 mya) periods; ended with the mass extinction of the dinosaurs and many other species.