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

question 76

Multiple Choice

The index model for stock A has been estimated with the following result:R_A = 0.01 + 0.94R_M + e_AIf σ_M = 0.30 and R²_A = 0.28, the standard deviation of return of stock A is

• A) 0.2025.
• B) 0.2500.
• C) 0.4500.
• D) 0.5329.

---

Definitions:

Dopamine

A neurotransmitter of the biogenic amine group; important in motor function.

cAMP Signal Transduction

A cellular signaling pathway involving the secondary messenger cyclic AMP (cAMP) which mediates a variety of physiological responses.

Adenylyl Cyclase

Enzyme responsible for catalyzing the conversion of ATP to cyclic AMP (cAMP).

Protein Kinase

An enzyme that modifies other proteins by chemically adding phosphate groups, playing a crucial role in cellular signaling and function.