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

question 76

Multiple Choice

The index model for stock A has been estimated with the following result:R_A = 0.01 + 0.94R_M + e_AIf σ_M = 0.30 and R²_A = 0.28, the standard deviation of return of stock A is

• A) 0.2025.
• B) 0.2500.
• C) 0.4500.
• D) 0.5329.

---

Definitions:

Mast Cell

A type of white blood cell that contains histamine and other chemicals involved in the inflammatory response.

Promote Inflammation

A biological response where parts of the body become reddened, swollen, hot, and often painful, especially as a reaction to injury or infection.

Connective Tissue

A type of bodily tissue that supports, binds together, and protects the organs and other tissues of the body.

Immunodeficiency Diseases

Disorders where the immune system's ability to fight infectious disease and cancer is compromised or entirely absent.