On Average, During the Past 75 Years, the Return on U.S

question 123

True/False

On average, during the past 75 years, the return on U.S. Treasury bills has exceeded the return on long-term government bonds.

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Definitions:

Regression Analysis

A statistical method for estimating the relationships among variables, often used to determine how the typical value of the dependent variable changes when one of the independent variables is varied.

Intercept

The point where a line, curve, or surface intersects a coordinate axis.

Alpha

Alpha is a measure used in finance to describe an investment strategy's ability to beat the market, or its "excess return" relative to the return of the benchmark index.

Index Model

A model of stock returns using a market index such as the S&P 500 to represent common or systematic risk factors.