The Index Model for Stock a Has Been Estimated with the Following

question 61

Multiple Choice

The index model for stock A has been estimated with the following result:R_A = 0.01 + 0.9R_M + e_A.If σ_M = 0.25 and R²A = 0.25, the standard deviation of return of stock A is

• A) 0.2025.
• B) 0.2500.
• C) 0.4500.
• D) 0.8100.

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Definitions:

IgM

Immunoglobulin M, a type of antibody that is produced initially in response to an antigen and indicates a current infection in the body.

Antibodies

Proteins produced by the immune system that recognize and neutralize foreign substances such as bacteria and viruses.

Leukapheresis

A medical procedure in which white blood cells are separated and removed from the blood, often used in the treatment of certain cancers and blood disorders.

Chemical Carcinogen

A substance or agent that can cause cancer by altering cellular metabolism or damaging DNA directly in cells.