A Simple Linear Regression of the Return of Firm a (R_A)on

question 116

Multiple Choice

A simple linear regression of the return of firm A (R_A) on the return of firm B (R_B) based on 18 observations,is = 2.2 + 0.4 R_B.If the coefficient of determination from this regression is 0.09,calculate the correlation between nR_A and .

• A) 0.03
• B) 0.04
• C) 0.09
• D) 0.30

---

Definitions:

Drug Interdiction

Measures aimed at stopping the illegal trafficking of drugs.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Prices

The price tag anticipated, mandatory, or surrendered in settlement for an item.

Drug Interdiction

The policy or practice of preventing illegal drugs from being trafficked and distributed.