A Simple Linear Regression of the Return of Firm A

question 38

Multiple Choice

A simple linear regression of the return of firm A, R_A, on the return of firm B, R_B, based on 18 observations, is = 2.2 + 0.4 R_B. If the coefficient of determination from this regression is 0.09, calculate the correlation between R_A and .

• A) 0.03
• B) 0.04
• C) 0.09
• D) 0.30

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Typological Model

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