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An empirical finance professor estimates the following regression between the return on a stock, R, and the return on S&P 500 index, Rsp:
R = 5% + 1.1 Rsp + error term
If the regression R-square is 0.25, estimate the change in the return on the stock when the return on the S&P 500 index changes from 12% to 15%.
A. 3.3%
B. 19.5%
C. 18.2%
D. 8.8%
Answer: A
Explanation:
Explanation/Reference:
Explanation:
With the given regression, the change in the return on the stock when the return on the S&P 500 index changes by one unit equals the slope coefficient, 1.1. Hence, when the return on the S&P 500 index changes by 3% from 12% to 15%, the return on the stock will change by 1.1*3% = 3.3%

NEW QUESTION: 2
Eine grafische Darstellung der Mitglieder des Projektteams und ihrer Berichtsbeziehungen ist bekannt als:
A. Verantwortlichkeitszuweisungsmatrix (RAM).
B. Organigramm des Projekts.
C. Ressourcenstrukturplan (RBS).
D. Ressourcenkalender.
Answer: B

NEW QUESTION: 3
What Objects can the Mass Delete Tool be used with?
Choose 3 answers.
A. Solutions
B. Leads
C. Accounts
D. Custom Objects
Answer: A,B,C


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