A Linear Regression to Estimate the Relation Between Research in Motion's

question 23

Multiple Choice

A linear regression to estimate the relation between Research in Motion's stock returns and the market's return gives the best-fitting line that represents the relation between the stock and the market.The slope of this line is our estimate of:

• A)alpha.
• B)beta.
• C)risk-free rate.
• D)volatility.
• E)standard deviation.

---

Definitions:

Regressive

A term describing a tax imposed in such a manner that the rate decreases as the amount subject to taxation increases.

Progressive

In taxation, it refers to a system where the tax rate increases as the taxable amount increases.

Payroll Tax

Taxes that are withheld from an employee's salary by their employer and paid to the government, often used to fund social security and Medicare.

Social Security

A government program designed to provide financial support to people who are retired, disabled, or unable to work.