Q732
In capital asset pricing model, characteristic line is classified as
A.
regression line
AnswerB.
probability line
C.
scattered points
D.
weighted line
Answer: Option A
Solution
Answer: Option A
Solution:
In capital asset pricing model, characteristic line is classified as regression line. The Regression Line is the line that best fits the data, such that the overall distance from the line to the points (variable values) plotted on a graph is the smallest.