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If There Is a Positive Correlation Between X and Y,then

question 49

Multiple Choice

If there is a positive correlation between X and Y,then the regression equation Y = bX + a will have _____.


Definitions:

Security Market Line

A line that represents the relationship between the risk of an investment and its expected return, helping investors to assess the risk-return ratio.

Slope

The measure of the steepness, incline, or grade of a line, often representing the rate of change in a mathematical context.

Stock's Beta

A rephrased definition for Beta Coefficient; it measures a stock's volatility in relation to the overall market, indicating the risk associated with the stock's returns.

Well-diversified Portfolio

An investment collection that includes a wide range of asset classes in order to minimize risks and maximize returns.

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