Sally Is a Staunch Democrat

question 91

Multiple Choice

Sally is a staunch Democrat. She has been arguing with Jim, who is a staunch Republican. In the course of their discussion, Sally is able to withstand the arguments Jim offers for his position, but just barely. She realizes afterward that her own counterarguments to his were pretty weak. Subsequent to this realization, Sally's attitude will

• A) become less certain.
• B) remain unchanged.
• C) become more certain.
• D) change to agree with Jim.

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Definitions:

Regression Analysis

A statistical method for estimating the relationships among variables, often used to determine how the typical value of the dependent variable changes when one of the independent variables is varied.

Intercept

The point where a line, curve, or surface intersects a coordinate axis.

Alpha

Alpha is a measure used in finance to describe an investment strategy's ability to beat the market, or its "excess return" relative to the return of the benchmark index.

Index Model

A model of stock returns using a market index such as the S&P 500 to represent common or systematic risk factors.