When Two Galaxies Collide, They Pass Through Each Other and Their

question 89

True/False

When two galaxies collide, they pass through each other and their stars almost never collide.

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Definitions:

Single-Index Model

A financial model that describes the return of a security or portfolio as a linear function of the return of a single market index, accounting for both the market return and idiosyncratic factors.

Excess Returns

Returns on an investment that exceed the benchmark or risk-free return, indicating the extra value gained by taking on risk.

Index Model

A financial model that describes the return of a stock as a function of the return of a market index, plus residual factors unique to that stock.

Standard Deviation

A statistical measure of the dispersion or variability around the mean of a set of data points, often used to quantify the risk of an investment.