The Proportion of Variation in a Company's Return That Is

question 59

Multiple Choice

The proportion of variation in a company's return that is related to the variation in the market return is measured with the

• A) coefficient of determination.
• B) standard deviation.
• C) epsilon.
• D) alpha.

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Definitions:

Substitutes

Goods, such as tacos and pizza, that relate in such a way that an increase in the price of one shifts the demand for the other rightward.

Honey

A sweet, viscous food substance made by bees from the nectar of flowers.

Expectation

The anticipation or belief regarding the future performance of the economy, markets, or individual financial assets.

CDs

Certificates of Deposit, a financial product offered by banks that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period.