Let $R _ { \text {unrestricted } } ^ { 2 } \text { and } R _ { \text {restricted} } ^ { 2 }$

question 34

Multiple Choice

Let $R _ { \text {unrestricted } } ^ { 2 } \text { and } R _ { \text {restricted} } ^ { 2 }$ be 0.4366 and 0.4149 respectively. The difference between the unrestricted and the restricted model is that you have imposed two restrictions. There are 420 observations. The F -statistic in this case is

• A) 4.61
• B) 8.01
• C) 10.34
• D) 7.71

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Definitions:

Current Ratio

An indicator of a company's short-term financial health, determined by dividing its assets due within a year by its liabilities due in the same timeframe.

Net Working Capital

The discrepancy between a firm's immediate assets and its short-term obligations.

Liquid Ratio

A financial metric comparing a company's liquid assets (cash and marketable securities) to its current liabilities, often used to assess liquidity.

Common Size Statement

A financial statement in which each line item is expressed as a percentage of a significant total, facilitating comparison across companies or periods.