Stephanie Is Interested Only in the Rate of Interest and Is

question 67

Multiple Choice

Stephanie is interested only in the rate of interest and is willing to take a great deal of risk in exchange for a high return.Which of the following bonds should she look for?

• A)federal bonds with short terms
• B)provincial bonds with long terms
• C)corporate bonds with short terms
• D)corporate bonds with long terms

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Definitions:

Regression Analysis

A statistical method used for estimating the relationships among variables, particularly the relationship between a dependent variable and one or more independent variables.

Dependent Variable

The variable in an experiment or model that is expected to change in response to changes in the independent variable.

Stepwise Regression

A method of fitting regression models in which the choice of predictive variables is carried out by an automatic procedure.

F-statistic

A ratio used in statistical analysis to determine the significance of a group of variables in a regression model.