What Does It Mean When There Is an Interaction Between

question 56

Multiple Choice

What does it mean when there is an interaction between two variables

• A) The measurement of the dependent variable depends on the effect of the independent variable. 
• B) The measurement of one dependent variable gets added to the measurement of another. 
• C) The effects of one independent variable get added to the effects of another. 
• D) The effects of one independent variable depend on the effects of another.

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Definitions:

Expected Return

The average amount of profit or loss one can anticipate on an investment, accounting for the probabilities of varying outcomes.

Standard Deviation

A statistic that measures the dispersion of dataset relative to its mean and is calculated as the square root of the variance.

Covariance

A measure that indicates the extent to which two securities move in the same or opposite directions.

Stock Selection Return

The return achieved by an investor that can be attributed to the specific stocks chosen for investment, rather than the overall market movement.