Question #18
Reading: Reading 1 Multiple Regression
PDF File: Reading 1 Multiple Regression.pdf
Page: 8
Status: Unattempted
Part of Context Group: Q18-19
First in Group
Shared Context
Question
If the return on the industry index is 4%, the stock's expected return would be:
Answer Choices:
A. 9.7%
B. 7.6%
C. 11.2%
Explanation
Y = b0 + bX1
Y = 2.1 + 1.9(4) = 9.7%