Analysts May Use Regression Analysis to Estimate the Index Model

question 26

Multiple Choice

Analysts may use regression analysis to estimate the index model for a stock.When doing so,the slope of the regression line is an estimate of ______________.

• A) the α of the asset
• B) the β of the asset
• C) the σ of the asset
• D) the δ of the asset
• E) none of these

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Definitions:

Wavelengths

Wavelengths refer to the distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave.

Colors

The aspect of things that results from the light they emit, transmit, or reflect, which is perceived by the eye and interpreted by the brain.

Blue

A primary color that is perceived when light with a dominant wavelength between approximately 450 and 495 nanometers is detected by the human eye.

Green

A color in the spectrum visible to the human eye, associated with nature, growth, and fertility.