The Variance of Y_i Is Given by
A) $\beta _ { 0 } ^ { 2 }$

question 42

Multiple Choice

The variance of Y_i is given by

• A) \(\beta _ { 0 } ^ { 2 }\) + \(\beta _ { 1 } ^ { 2 }\) var(X_i)+ var(u_i).
• B)the variance of u_i.
• C) \(\beta _ { 1 } ^ { 2 }\) var(X_i)+ var(u_i).
• D)the variance of the residuals.

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Definitions:

Dividends

Funds distributed by a company to its shareholders, typically coming from the firm's profits.

Clientele Effect

The theory suggesting that changes in dividend policy can attract or repel specific groups of investors, affecting the stock price.

Dividends

Disbursements issued by a company to its shareholders, representing a share of the earnings distributed to its stock owners.

Residual

The amount remaining after the principal parts have been taken away or used up, often used in financial contexts.