Given the Least-Squares Regression Line = 5 -2x, What

question 40

Multiple Choice

Given the least-squares regression line = 5 -2x, what may be said about the relationship between the two variables?

• A) The relationship between x and y is positive.
• B) The relationship between x and y is negative.
• C) As x increases, so does y.
• D) As x decreases, so does y.

---

Definitions:

Coupon Payments

Regular interest payments made to bondholders, typically on a semi-annual basis, based on the bond's interest rate.

Maturity Value

The amount of money an investment will produce at the end of its holding period, including the principal and interest or dividends.

Price Volatility

The degree to which the price of an asset, security, or market index moves up or down over time.

Coupon Bond

A bond that pays the holder a fixed interest payment (coupon) at regular intervals until maturity, when the principal amount is repaid.