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

question 99

Multiple Choice

The index model has been estimated for stock A with the following results:
R_A = 0.01 + 0.8R_M + e_A
Σ_M = 0.20 σ(e_A) = 0.10
The standard deviation of the return for stock A is __________.

• A) 0.0356
• B) 0.1886
• C) 0.1600
• D) 0.6400
• E) none of these

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Definitions:

Extrinsic Rewards

Benefits received from an external source as recognition for performing a particular action or behavior, such as money or praise.

Intrinsic Rewards

A type of motivation driven by an internal reward, such as personal satisfaction or the joy of performing a task, rather than by external factors.

Needs

Fundamental requirements or essentials necessary for individuals or communities to thrive and function.

Fears

Emotional responses to perceived threats or dangers, often causing anxiety, stress, or avoidance behaviors.