In the Equation Y' = a + BX, What Does

question 38

Multiple Choice

In the equation Y' = a + bX, what does b represent?

• A) intercept
• B) slope
• C) individual's score
• D) predicted criterion score

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Definitions:

Risk-Free Asset

An asset which is assumed to have no risk of financial loss and typically refers to government bonds or bills.

Risky Portfolio

A risky portfolio comprises investments that have a higher degree of risk, aiming for potentially higher rewards but with an increased possibility of losses.

Arithmetic Average

The sum of a series of numbers divided by the count of that series of numbers, commonly used to calculate the mean value of datasets.

Geometric Average

A method of calculating the average rate of return of a set of values by multiplying them together and taking the nth root, where n is the number of values, typically used for investment growth rates.