While Performing the Regression Analysis of Historical Returns of a Stock

question 47

Essay

While performing the regression analysis of historical returns of a stock with a historical return of a general market index, you would plot the line of best fit through those data points. The slope of that line represents the beta of the stock in question. However, in most instances the data points do not lie exactly on that line. Explain the reason.

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Definitions:

Security Needs

Basic human requirements for safety and protection from physical or emotional harm.

Esteem Needs

In Maslow's hierarchy of needs, these are the fourth level, including respect, self-esteem, status, recognition, strength, and freedom.

Physiological Needs

The basic, essential requirements for human survival, such as food, water, shelter, and air, which are the foundation of Maslow's hierarchy of needs.

Affiliation Needs

Refer to an individual's need to build and maintain relationships or be part of groups.