QUESTION 2 We transferred $1,200 to our bank savings account 5 years ago. Due to the accrued interest the current amount on our savings account has become $1,500. What is the average interest rate per year? 5.00% 4.00% 4.56% 5.20% QUESTION 3 A researcher examines the relationship between certain independent variables (Xi) being the price, the kind of retailer, advertising efforts and the profit (Y) on a product and applies an ordinary linear regression. The calculated adjusted R2 = 0.046. This means that: 1) The relationship is significant since 0.046 < 5% given that 5% is the tolerable risk 2) 4.6% of the profit can be explained by the independent variables 3) The relationship appears to be very weak (< 5%) and that no further conclusions are possible 4) The real R2 is much higher than 0.046

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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QUESTION 1
a−5√.a2√3a√3√a−5.a23a3 =
(with a > 0)
1a2√31a23
1a21a2
1a.a√1a.a
a2a2


QUESTION 2
We transferred $1,200 to our bank savings account 5 years ago.
Due to the accrued interest the current amount on our savings
account has become $1,500. What is the average interest rate
per year?
5.00%
4.00%
4.56%
5.20%
QUESTION 3
A researcher examines the relationship between certain independent variables (Xi) being the price, the
kind of retailer, advertising efforts and the profit (Y) on a product and applies an ordinary linear
regression. The calculated adjusted R2 = 0.046. This means that:


1) The relationship is significant since 0.046 < 5% given that 5% is the tolerable risk
2) 4.6% of the profit can be explained by the independent variables
3) The relationship appears to be very weak (< 5%) and that no further conclusions are possible
4) The real R2 is much higher than 0.046

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