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

question 60

Multiple Choice

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


The characteristic line for this stock is Rstock = ________ + ________ Rmarket.

• A) .35; .12
• B) 4.05; 1.32
• C) 15.44; .97
• D) .26; 1.36

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Definitions:

Milgram's Study

Experiments led by Stanley Milgram in social psychology that assessed how much individuals would follow orders from an authority figure to do things that go against their own moral judgment.

Obedience to Authority

The act of following orders or directives from someone in a position of power, often without questioning them.

Highest Levels

Describes the uppermost tier or echelon in a hierarchy, system, or field, often indicating the peak of achievement, authority, or quality.

Milgram

A psychologist who conducted experiments on obedience, demonstrating the power of authority in compelling individuals to act against their personal conscience.