Consider the Single-Index Model

question 87

Multiple Choice

Consider the single-index model.The alpha of a stock is 0%.The return on the market index is 10%.The risk-free rate of return is 3%.The stock earns a return that exceeds the risk-free rate by 11%, and there are no firm-specific events affecting the stock performance.The β of the stock is

• A)0.64.
• B)0.75.
• C)1.17.
• D)1.33.
• E)1.50.

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Definitions:

Scientific Breakthrough

A scientific breakthrough refers to a significant and unexpected discovery that advances understanding, opens new research pathways, or solves a longstanding problem within a scientific field.

Ancient Formula

Traditionally established and long-used recipes or methods, often in contexts such as medicine, rituals, or culinary arts. If referring to fabricated historical concepts, then NO.

Self-medicate

The practice of taking medicines or substances on one's own initiative to treat an ailment without professional advice.

Complementary and Alternative Medicine (CAM)

A group of diverse medical and health care systems, practices, and products not traditionally part of conventional medicine.