A Linear Regression Was Done to Estimate the Relation Between

question 81

Multiple Choice

A linear regression was done to estimate the relation between Sprint's stock returns and the market's return.The intercept of the line was found to be 0.23 and the slope was 1.47.Which of the following statements is true regarding Sprint's stock?

• A) Sprint's beta is 0.23.
• B) Sprint's beta is 1.47.
• C) The risk-free rate is 1.47%.
• D) The standard deviation of Sprint's excess returns is 23%.
• E) Sprint's beta is between 0.23 and 1.47.

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Definitions:

Dictyostelium Discoides

A species of slime mold that is often used in scientific research as a model organism for studying cellular processes and development.

Cellular Slime Mold

A type of single-celled organism that can aggregate to form multicellular structures under certain conditions, often used in studies of development and cell signaling.

Behavior

Actions or reactions of an organism, often in response to its environment.

Inclusive Fitness

Inclusive fitness is a concept in evolutionary biology that explains an organism's total genetic contribution to the next generation, including its own offspring and the offspring of its relatives.