Homoscedasticity Is the Assumption That the Degree of Scatter Is

question 37

Multiple Choice

Homoscedasticity is the assumption that the degree of scatter is _____ at any point along the prediction line.

• A) greater
• B) equal
• C) less
• D) varied

---

Definitions:

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, usually with fixed dividends.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and is used to evaluate the cost of funding projects via equity financing.

Dividend

A disbursement by a company to its shareholders, often from its profit reserves.

Growth Rate

The rate at which a company's earnings, revenue, or another financial metric increases over a specific period.