- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 10. Simple Linear Regression
- Subject 6. Functional Forms for Simple Linear Regression
CFA Practice Question
Consider the following exhibit. If it is transformed into a log-log model lnY = a + blnX, which is true?
A. b < 0
B. 0 < b < 1
C. b > 1
Explanation: The impact of the independent variable is positive, but becomes smaller as its value increases.
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