The Slope of the Regression Line That Exhibits the Past

question 92

Multiple Choice

The slope of the regression line that exhibits the past relationship between a stock's return and the market's return is the:

• A) security market line.
• B) stock's beta.
• C) market risk premium.
• D) stock's unique risk.

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Definitions:

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Information, understanding, or skills obtained through education or experience; the theoretical or practical understanding of a subject.

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The use of empirically demonstrated behavior change techniques to improve behavior, such as altering an individual's behaviors and reactions to stimuli through positive and negative reinforcement.

Reinforcement

In psychology, a concept where a behavior is encouraged or strengthened by a consequence that follows it.

Modelling

The process of demonstrating a particular behavior or skill that others are expected to learn or emulate.