Multiple Choice
Which of the following is the correct interpretation for the regression coefficient of Green?
A) The regression coefficient indicates that the PE ratio of a firm that is green will, on average, be 2.09 points higher than a firm that is not green with the same profit growth rate and profit margin.
B) The regression coefficient indicates that the PE ratio of a firm that is green will, on average, be 2.09 points lower than a firm that is not green with the same profit growth rate and profit margin.
C) The regression coefficient indicates that the PE ratio of a firm that is green will, on average, be 2.09 points times higher than a firm that is not green.
D) The regression coefficient indicates that the PE ratio of a firm that is green will, on average, be 2.09 points times lower than a firm that is not green.
E) The regression coefficient is not significantly different from zero.
Correct Answer:
Verified
Correct Answer:
Verified
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