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:

Muscle Contraction

The process in which muscle fibers shorten or lengthen, producing movement or maintaining posture.

Neurotransmitter

Chemicals in the nervous system that transmit signals across a chemical synapse from one neuron (nerve cell) to another 'target' neuron.

Action Potential

A rapid and temporary electrical charge that travels along a neuron, allowing for the transmission of signals within the nervous system.

Dopamine

A neurotransmitter involved in controlling the brain's reward and pleasure centers, movement, and emotional responses.