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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Definitions:

French Revolutionary Forces

The military and paramilitary units participating in the French Revolution, instrumental in the overthrow of the monarchy and establishment of the First Republic.

Oath of the Horatii

A painting by Jacques-Louis David that depicts a scene from Roman history, emphasizing themes of duty and patriotism.

Watteau

Jean-Antoine Watteau, a French painter known for his Rococo style, depicting light-hearted leisure scenes called fêtes galantes.

Poussinistes

Followers of Nicolas Poussin (17th-century French painter) who prioritized line and drawing in art, as opposed to color and brushwork preferred by the Rubenistes.