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Analysts May Use Regression Analysis to Estimate the Index Model

Question 12
Multiple Choice

Analysts may use regression analysis to estimate the index model for a stock. When doing so, the slope of the regression line is an estimate of A) the α of the asset. B) the β of the asset. C) the σ of the asset. D) the δ of the asset.

Related questions
Q 13
Analysts may use regression analysis to estimate the index model for a stock. When doing so, the intercept of the regression line is an estimate of A) the α of the asset. B) the β of the asset. C) the σ of the asset. D) the δ of the asset.
Q 14
In a factor model, the return on a stock in a particular period will be related to A) firm-specific events. B) macroeconomic events. C) the error term. D) both firm-specific events and macroeconomic events. E) neither firm-specific events nor macroeconomic events.
Q 15
Rosenberg and Guy found that __________ helped to predict a firm's beta. A) the firm's financial characteristics B) the firm's industry group C) firm size D) the firm's financial characteristics and the firm's industry group E) All of the options are correct.
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