Use the Equation for the Question(s) Below

question 60

Multiple Choice

Use the equation for the question(s) below.
Consider the following regression model:

-The term is a(n)

• A) measure of the expected percent change in the excess return of a security for a 1% change in the excess return of the second factor portfolio.
• B) error term that has an expectation of zero and is uncorrelated with either factor.
• C) constant term.
• D) measure of the expected percent change in the excess return of a security for a 1% change in the excess return of the first factor portfolio.

---

Definitions:

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Quarterly Dividends

Dividends paid by a corporation to its shareholders at regular intervals every three months.

Dividend Yield

The annual dividend a company provides vis-a-vis its stock price, presented as a financial ratio.

Dividend Income

Income received from owning shares in a company that pays dividends to its shareholders.