Analysts May Use Regression Analysis to Estimate the Index Model

question 65

Multiple Choice

Analysts may use regression analysis to estimate the index model for a stock.When doing so,the intercept 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

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Definitions:

Social Norms

Accepted behaviors that are considered typical within a group or society, guiding interactions and expectations.

Cognitive Dissonance Theory

A theory suggesting that people experience discomfort (dissonance) when their beliefs or behaviors are inconsistent with one another, often leading to changes to reduce the dissonance.

Philip Zimbardo

Philip Zimbardo is a psychologist well-known for his 1971 Stanford prison experiment which highlighted the impact of situational forces on human behavior.

Reliability

The consistency and dependability of a measurement tool or test over time, ensuring that the same results can be repeated under similar conditions.