A linear regression to estimate the relation between General Motors' stock returns and the market's return gives the best-fitting line that represents the relation between the stock and the market. The slope of this line is our estimate of ________. 87) A) risk-free rate B) alpha C) beta D) volatility

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As the slope of the line is between General Motors' stock returns and the market's return, the slope of this line is the estimate of C) beta.

In the field of business, when two variables are studied together in order to know how one variable affects the other variable in a business, then such a type of analysis is referred to as linear regression.

In the regression analysis, the beta can be described as a standard coefficient that shows the best line in the analysis that can be made when two variables are compared.

In the question above, the relation between the general motor's stock and the return is being studied. The line in regression analysis that will be the best fitting based on these two variables will be the representation or estimation of the beta value. Hence, the correct option is C) beta.

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