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A Simple Linear Regression of the Return of Firm A

Question 38

Multiple Choice

A simple linear regression of the return of firm A, RA, on the return of firm B, RB, based on 18 observations, is A simple linear regression of the return of firm A, R<sub>A</sub>, on the return of firm B, R<sub>B</sub>, based on 18 observations, is = 2.2 + 0.4 R<sub>B</sub>. If the coefficient of determination from this regression is 0.09, calculate the correlation between R<sub>A</sub><sub> </sub>and . A) 0.03 B) 0.04 C) 0.09 D) 0.30 = 2.2 + 0.4 RB. If the coefficient of determination from this regression is 0.09, calculate the correlation between RA and A simple linear regression of the return of firm A, R<sub>A</sub>, on the return of firm B, R<sub>B</sub>, based on 18 observations, is = 2.2 + 0.4 R<sub>B</sub>. If the coefficient of determination from this regression is 0.09, calculate the correlation between R<sub>A</sub><sub> </sub>and . A) 0.03 B) 0.04 C) 0.09 D) 0.30 .


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

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