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

question 16

Multiple Choice

The index model for stock A has been estimated with the following result: R_A = 0.01 + 0.9R_M + e_A.
If σ_M = 0.25 and R²_A = 0.25, the standard deviation of return of stock A is

• A) 0.2025.
• B) 0.2500.
• C) 0.4500.
• D) 0.8100.

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Definitions:

Pharmacotherapy

The treatment of diseases and disorders with medications, utilizing the pharmacological properties of drugs to achieve therapeutic effects.

Adequate Nutrition

Intake of the necessary nutrients that are essential for growth, repair, and maintenance of a healthy body.

Chronic Otitis Media

A long-standing or recurrent inflammation of the middle ear, typically associated with fluid accumulation and frequently causes hearing impairment.

Effusion

The escape of fluid into a part of the body or into a body cavity, leading to swelling and pressure, often resulting from inflammation or injury.