- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 4. Introduction to Linear Regression
- Subject 1. Linear regression

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**CFA Practice Question**

The slope coefficient in a regression measures:

A. The percentage change in the dependent variable caused by a 1% change in the independent variable.

B. The rate at which the dependent variable changes with respect to the independent variable.

C. The change in the independent variable caused by a unit change in the dependent variable.

**Explanation:**In a univariate regression, the slope coefficient gives the change in the dependent variable caused by a unit change in the independent variable. It thus measures the rate at which the dependent variable changes with respect to the independent variable.

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**User Contributed Comments**
5

User |
Comment |
---|---|

Alastair |
univariate regression = linear regression |

JalaniN |
wht about c? I think b is also right |

patsy |
no. percentage change will depend on the constant also. slope indicates rate of change |

grezavi |
think y=mx+b y dep x inde m slope b intercept |

amigosu |
C is not right because dependent and independent are swapped |