The Excess Return Form of the Single-Index Market Model Is

question 30

Multiple Choice

The excess return form of the single-index market model is

• A) R_it =α + b(R_mt - R_it) + e_it
• B) RFR_t = α + b(R_mt - RFR_t) + e_it
• C) R_it - RFR_t = α + b(R_mt) + e_it
• D) R_it = α + b(R_mt - RFR_t) + e_it
• E) R_it - RFR_t = α + b(R_mt - RFR_t) + e_it

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Definitions:

Sympathetic Neurons

Neurons that are part of the sympathetic nervous system, responsible for the body's 'fight or flight' response.

Neural

Pertaining to the nerves or the nervous system.

Autocrine

Relating to or denoting a mode of hormone action where a hormone affects the same cell type that produced it.

Nuclear Receptor

A class of proteins within cells that, upon binding with a ligand, can act as transcription factors to regulate gene expression.