Use a Graphing Utility to Find the Equation of the Line

question 189

Multiple Choice

Use a graphing utility to find the equation of the line of best fit. Round to two decimal places, if necessary.
- $$\begin{array} { c | c c c c } \mathrm { x } & 2 & 4 & 5 & 6 \\\hline \mathrm { y } & 7 & 11 & 13 & 20\end{array}$$

• A) y = 2.8x
• B) y = 3x + 0.15
• C) y = 2.8x + 0.15
• D) y = 3x

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Definitions:

Market

A medium that allows buyers and sellers to exchange goods, services, or information.

Highly Competitive Market

A market structure characterized by a large number of sellers and buyers, leading to competitive pricing and minimal market power for individual firms.

Security Market Line

A representation in the capital asset pricing model (CAPM) that displays the relationship between the expected return of a security and its systemic risk.

Beta

A statistic that measures the volatility of a stock or portfolio compared to the market as a whole, used in the CAPM to calculate cost of equity.