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Related to regression coefficient: correlation coefficient
Term yielded by regression analysis that indicates the sensitivity of the dependent variable to a particular independent variable. See: Parameter.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A mathematical measure of the effect that an independent variable has on a dependent variable. It may be used on any number of financial measures. For example, one may calculate the effect that earnings have on the share price.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A mathematical measure of the relationship between a dependent variable and an independent variable. For example, a financial theorist might attempt to determine the effect of increased dividends on a stock's price by calculating the regression coefficient between the price of the stock and its dividends per share. In this instance, the stock price is the dependent variable and the dividend payment is the independent variable.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.