Consider the Single-Index Model $\beta$ Of the Stock Is
A)0

question 46

Multiple Choice

Consider the single-index model.The alpha of a stock is 0%.The return on the market index is 10%.The risk-free rate of return is 5%.The stock earns a return that exceeds the risk-free rate by 5%, and there are no firm-specific events affecting the stock performance.The $\beta$ of the stock is

• A)0.67.
• B)0.75.
• C)1.0.
• D)1.33.

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Definitions:

Availability Heuristic

A prediction about the probability of an event based on the ease of recalling or imagining similar events.

Sternberg's Triarchic

A theory of intelligence that proposes three fundamental aspects: analytical, creative, and practical intelligence.

Gardner's Theory

A theory of multiple intelligences proposed by Howard Gardner, suggesting that individuals have eight or more relatively autonomous intelligences.

Cognitive Psychology

Cognitive psychology is the branch of psychology that studies mental processes including how people think, perceive, remember, and learn.