Which of the Following Statements in Statistical Terminology Is Equivalent

question 125

Multiple Choice

Which of the following statements in statistical terminology is equivalent to the statement: "There is no exact linear relationship among the explanatory variables"?

• A) The error term is homoscedastic.
• B) There is no endogeneity.
• C) There is no autocorrelation.
• D) There is no perfect multicollinearity.

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Definitions:

Semi-Strong Form

The semi-strong form is a level of market efficiency theory suggesting that asset prices reflect all publicly available information.

Mechanistic Hypothesis

The hypothesis that share prices respond mechanistically to changes in accounting numbers, ignoring the effects of accounting policies.

Capital Markets

Financial markets where long-term debt or equity-backed securities are bought and sold, assisting in raising capital.

Accounting Policies

Unique theories, platforms, systems, edicts, and maneuvers practiced by an organization in the creation and issuance of its financial testimonies.