What Does R² = 0 Indicate

question 13

Multiple Choice

What does R² = 0 indicate?

• A)Changes in the spot rate and changes in the futures price are perfectly correlated.
• B)All observations between changes in spot rate and changes in futures price lie on a straight line.
• C)The spot and future exchange rates are expected to move imperfectly together.
• D)The FI must sell a greater number of futures to hedge the cash position.
• E)There is no statistical association between changes in spot rates and changes in futures price.

Differentiate between the CAPM and APT in terms of assumptions and applications.

Understand the concept of culture in the context of values, ideas, and attitudes shared among members of a group.

Recognize the legal implications of business practices and the distinction between ethical and legal behaviors.

Identify ethical dilemmas and understand ethical behavior in business practices.

---

Definitions:

Economic Forces

Factors such as inflation, exchange rates, economic growth, and governmental policy that affect the business environment and economic performance.

Domino's

A multinational pizza restaurant chain known for its wide variety of pizza options and fast delivery services.

Marketing Department

A division within a company that focuses on creating and implementing strategies to promote and sell products or services.

Environmental Forces

External factors like climate, ecological changes, and natural resources that affect an organization's operations and decision-making.