In the CIR (1985) Model, Which of the Following Statements $r _ { t }$

question 18

Multiple Choice

In the CIR (1985) model, which of the following statements is true? The price of the bond increases when

• A) The short rate \(r _ { t }\) increases.
• B) The rate of mean reversion \( { K }\) rises.
• C) The long-run mean rate \(\theta\) increases.
• D) The volatility \(\sigma\) increases.

Comprehend the calculation of F and R statistics in regression analysis.

Interpret regression equations and their components (slope and Y-intercept).

Distinguish between the slope coefficient and correlation coefficient, understanding their distinct roles in regression analysis.

Grasp the concept and calculation of multiple correlation in statistical analysis.

---

Definitions:

Paid-in Capital

Funds received from investors during the issuance of stock, exceeding the par or stated value of the shares, also known as "contributed capital."

Legal Capital

The portion of a company's equity that cannot legally be distributed to shareholders, often equivalent to the par value of the shares.

SEC

Stands for the Securities and Exchange Commission, a U.S. government agency that oversees and enforces federal securities laws to protect investors and ensure market integrity.

Dividends

Distributions of earnings allocated by a company to its shareholders, often in the form of cash payments or additional shares.