The ____________ Tells Us Whether or Not Predictor Variable Has

question 28

Multiple Choice

The ____________ tells us whether or not predictor variable has a "significant" (statistically speaking) relationship with the dependent variable.

• A) a-ratio
• B) b-ratio
• C) t-ratio
• D) m-ratio
• E) n-ratio

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Definitions:

Market Rate of Return

The average return on investment that is typically expected from an asset class over a period.

Expected Return

The mean of all potential investment returns, adjusted for the probability of each result occurring.

Security's Beta

A measure of an investment's volatility compared to the market as a whole, indicating its risk in relation to the market.

Risk Premium

The extra return expected from an investment for taking on additional risk.