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On the Basis of Regression Equation

question 53

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On the basis of regression Equation On the basis of regression Equation    we can decompose the variability of the dollar value of the asset,Var(P) ,into two separate components. A) Cov(P,S)  = b<sup>2</sup> *Var(P)  + Var(S)  B) Var(P)  = b<sup>2</sup> * Var(S)  + Var(e)  C) Cov(P,S)  = b<sup>2</sup> * Cov(S,P)  + Cov(S,e)  D) Var(P)  = b<sup>2</sup> *Var(S)  E) None of the above
we can decompose the variability of the dollar value of the asset,Var(P) ,into two separate components.

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Definitions:

Budget Deficits

occur when a government's expenditures exceed its revenues within a specific fiscal period, creating a shortfall that requires borrowing to finance.

Interest Rates

The expense associated with taking out a loan or the benefit received from depositing funds, typically described as a yearly percentage of the total sum.

GDP

Gross Domestic Product (GDP) signifies a country's economic output, quantifying the sum value of all produced goods and services within a designated timeframe.

Federal Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues within a fiscal year.

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