Use the Equation for the Question(s) Below

question 28

Multiple Choice

Use the equation for the question(s) below.
Consider the following regression model:
R_s - r_f = a_s + (R_F1 - r_f) + (R_F2 - r_f) + e
-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) constant term.
• C) error term that has an expectation of zero and is uncorrelated with either factor.
• 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.

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Definitions:

E-commerce

The buying and selling of goods and services over the internet, as well as the transfer of money and data to execute these transactions.

B2B

Business to Business, a type of commerce transaction that exists between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.

Clicks-and-mortar

A business model that combines online presence with physical retail outlets, using both channels for sales and customer interaction.

Physical

Pertaining to or involving the body as opposed to the mind or spirit, or relating to things that can be seen or touched.