Question: QUESTION 1 The beta coefficient in a simple linear regression model measures the sensitivity of the independent variable (x) to changes in the dependent variable

QUESTION 1

  1. The beta coefficient in a simple linear regression model measures the sensitivity of the independent variable (x) to changes in the dependent variable (y):

    True

    False

  2. According to the Capital Asset Pricing Model (CAPM) investors should only be rewarded for taking systematic risk, and not for asset-specific risk (unsystematic risk) which can be diversified away:

    True

    False

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