Answer: whether or not a company is a likely takeover target

## Explanation **Option B is correct** because: - Logistic regression is designed for binary classification problems (yes/no, 0/1 outcomes) - Predicting whether a company is a takeover target is a binary classification problem - The model outputs probabilities between 0 and 1 that can be used for classification **Why other options are incorrect:** - **Option A**: Portfolio returns are continuous variables, better suited for linear regression - **Option C**: Volatility is also a continuous measure, not appropriate for logistic regression

Author: LeetQuiz Editorial Team