Question: A conducted regression had stock price as the dependent variable and firm size was the independent variable. Only firm size was on a natural log

A conducted regression had stock price as the dependent variable and firm size was the independent variable. Only firm size was on a natural log scale. The beta coefficient of firm size was -14 and p =0.02.

Thus, every [ Select ] ["1%", "1", "2%", "2", "14%", "14"]increase in the firm size is on average associated with a [ Select ] ["1", "0.14", "14%", "2%", "1%", "2"]decline in the stock price, which is statistically [ Select ] ["insignificant", "significant"].

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!