The specific risk associated with a stock is measured by ________.
A)the slope of the regression line
B)the intercept of the regression equation
C)the standard error of the estimate
D)the sum of the squares of errors

Question

Quizplus · Accepted Answer

The standard error of the estimate measures the variability or dispersion of a stock's returns around its expected value. It represents the amount of uncertainty associated with the stock's prediction, thus reflecting the specific risk of that stock. The slope and intercept of the regression line and the sum of the squares of errors are related to the regression analysis, which helps explain the relationship between a stock's returns and those of a market index, but do not directly measure the specific risk of the stock.

The Specific Risk Associated with a Stock Is Measured by ________