Consider the Regression Equation

question 10

Multiple Choice

Consider the regression equation:
R_it- r_ft= _ai+ b_i(r_mt- r_ft) + e_it
Where:
R_it= return on stock i in month t
R_ft= the monthly risk-free rate of return in month t
R_mt= the return on the market portfolio proxy in month t
This regression equation is used to estimate

• A)the security characteristic line.
• B)benchmark error.
• C)the capital market line.
• D)all of the above.
• E)none of the above.

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Definitions:

Psychographic Segmentation

A marketing strategy that divides a market based on consumer personality traits, lifestyles, interests, attitudes, and values.

Geographic Segmentation

The division of a market into different geographical units such as countries, states, regions, cities, or neighborhoods, to tailor marketing efforts to local preferences and conditions.

Lifestyle

The interests, opinions, behaviours, and behavioural orientations of an individual, group, or culture.

Geodemographics

Geodemographics is a method of market segmentation that combines geography with demographic information to classify populations for targeted marketing and research purposes.