A Linear Regression Was Done to Estimate the Relation Between

question 47

Multiple Choice

A linear regression was done to estimate the relation between Sprint's stock returns and the market's return.The intercept of the line was found to be 0.23 and the slope was 1.47.Which of the following statements is TRUE regarding Sprint's stock?

• A)Sprint's beta is 0.23.
• B)Sprint's beta is 1.47.
• C)The risk-free rate is 1.47%.
• D)The standard deviation of Sprint's excess returns is 23%.
• E)Sprint's beta is between 0.23 and 1.47.

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Definitions:

Subjective Well-being

An individual's self-assessment of their overall happiness and life satisfaction.

Community

A community is a group of people living in the same place or having a particular characteristic in common, often sharing common values or interests.

Personal Wealth

The total value of an individual's assets, including money, property, and investments, minus all debts.

Power

The ability or capacity to do something or act in a particular way, often involving the control over resources or people.