On a graph with common stock returns on the Y-axis and market returns on the X-axis,the slope of the regression line represents:

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Quizplus · Accepted Answer

The slope of the regression line represents beta, which is a measure of a stock's sensitivity to changes in the overall market. It indicates how much a stock's returns move in relation to the market returns. Alpha represents the excess returns above or below the market returns, R-squared represents the percentage of the variation in the stock returns that can be explained by the market returns, and standard error represents the variation of the data points from the regression line.

On a Graph with Common Stock Returns on the Y-Axis