When an Explanatory Variable Is Dropped from a Multiple Regression

question 191

True/False

When an explanatory variable is dropped from a multiple regression model, the adjusted can increase.

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Definitions:

Yield to Call

The return an investor would receive if a callable bond is held until the issuer exercises the call option.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Coupon Rate

The interest rate stipulated on a bond or fixed-income security that the issuer pays to the holders periodically until maturity.

Current Yield

The annual income (interest or dividends) divided by the current price of the security, expressed as a percentage.