Analysts May Use Regression Analysis to Estimate the Index Model

question 79

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 β of the asset.
• B)the β of the asset .
• C)the β of the asset
• D)The β of the asset
• E)none of the above

---

Definitions:

Equilibrium Quantity

The supply and demand of goods or services at the price where they are balanced.

Marginal Productivity

The additional output derived from the use of one more unit of a variable input while other inputs remain constant.

Equilibrium Wage Rate

The equilibrium wage rate is the wage level at which the quantity of labor supplied by workers equals the quantity of labor demanded by employers in the market.

Marginal Productivity

The change in output resulting from employing one more unit of a particular input, keeping all other inputs constant.