A Higher ________ Means That an Asset's Return Is More

question 133

Multiple Choice

A higher ________ means that an asset's return is more sensitive to changes in the value of the market portfolio.

• A)alpha
• B)beta
• C)CAPM
• D)APT

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Definitions:

Dummy Variable

A numeric variable used in regression models to represent categories of a qualitative variable with a series of zeros and ones.

Quantitative Variable

A quantitative variable is a type of variable that can be measured quantitatively and expresses a certain quantity, amount, or range.

Slope Coefficient

It is a number that measures the degree of relationship between a dependent variable and an independent variable in a regression model.

Stepwise Procedure

A method of adding or removing variables incrementally in regression analysis based on certain criteria, such as the statistical significance of the variables.