You Run a Regression for a Stock's Return on a Market

question 11

Multiple Choice

You run a regression for a stock's return on a market index and find the following Excel output:


The beta of this stock is ________.

• A) .12
• B) .35
• C) 1.32
• D) 4.05

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Definitions:

Twin Studies

Research designs that compare monozygotic (identical) and dizygotic (fraternal) twins to assess genetic and environmental influences on physical and psychological traits.

Trait

A distinguishing quality or characteristic, typically one belonging to a person.

Behavior

The observable actions or responses of humans or animals in response to external or internal stimuli.

Genes

Units of heredity made up of DNA that act as instructions to make molecules called proteins, influencing the development, functioning, and reproduction of organisms.