Assume You Plot the Monthly Returns for a Stock and Also

question 30

Multiple Choice

Assume you plot the monthly returns for a stock and also for the S&P 500.Using regression analysis,the straight line through these points that is developed by the analysis is referred to as the ________ which has a slope of ________ and an intercept of ________.

• A)security market line; alpha; gamma
• B)characteristic line; beta; alpha
• C)characteristic line; alpha; beta
• D)security market line; beta; gamma
• E)characteristic line; gamma; alpha

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Definitions:

Expectancy Theory

A theory of motivation that suggests an individual's behavior is determined by their expected outcomes or rewards.

Basic Data

Fundamental information or figures that serve as the basis for analysis, calculation, or reasoning.

Modeling

The act of representing or simulating real-world processes, behaviors, or systems to study their properties or effects.

Coaching

A development process wherein an experienced individual, known as a coach, supports a learner or client in achieving a specific personal or professional goal by providing guidance and feedback.