Either an Antecedent or Intervening Variable May Create a Spurious

question 32

True/False

Either an antecedent or intervening variable may create a spurious relationship.

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Definitions:

Securities' Returns

The profit or loss generated on a security over a particular period, usually expressed as a percentage.

Variances

The quantitative measure of the difference between actual and expected behavior, often used in finance to assess volatility of returns or tracking errors.

Covariances

An indicator of the extent to which two variables fluctuate in tandem.

Risky Securities

Financial instruments carrying a higher potential for loss, often offering greater potential returns to compensate for the increased risk.