A Linear Regression to Estimate the Relation Between General Motors

question 81

Multiple Choice

A linear regression to estimate the relation between General Motors' stock returns and the market's return gives the best-fitting line that represents the relation between the stock and the market. The slope of this line is our estimate of ________.

• A) alpha
• B) beta
• C) risk-free rate
• D) volatility

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Definitions:

Behavioral Confirmation

A phenomenon where people's social expectations lead them to act in ways that cause others to confirm these expectations.

Self-fulfilling Prophecy

A belief or expectation that influences one's behavior in a way that causes the belief to become true.

Legitimizing Myths

Ideologies or widespread beliefs that justify the social arrangements and practices of a society, often serving to maintain power structures and inequalities.

Gender Inequality

The disparity in status, opportunities, and treatment between people based on their gender.