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Basic Question 0 of 23

A financial economist runs the following regression:

Demand for cars = alpha + beta*income level + error

In this regression, the demand for cars is ______ variable and the income level is ______ variable.

A. dependent; dependent.
B. dependent; independent.
C. independent; independent.

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Lina

Lina

Learning Outcome Statements

calculate and interpret the mean, variance, and covariance (or correlation) of asset returns based on historical data

calculate and interpret portfolio standard deviation

describe the effect on a portfolio's risk of investing in assets that are less than perfectly correlated

CFA® 2025 Level I Curriculum, Volume 2, Module 1.