You Run a Regression of a Share's Returns Versus a Market

question 33

Multiple Choice

You run a regression of a share's returns versus a market index and find the following: Based on the data you know that the share

• A)earned a positive alpha that is statistically significantly different from zero
• B)has a beta precisely equal to 0.890
• C)has a beta that could be anything between 0.6541 and 1.465 inclusive
• D)has no systematic risk

---

Definitions:

Synaptic Vesicles

Small sacs located in nerve terminals that store neurotransmitters released during synaptic transmission.

Synaptic Cleft

The small gap at a synapse between neurons, across which neurotransmitters travel to transmit electrical signals from one neuron to another.

Presynaptic Terminal

The part of a neuron that releases neurotransmitters to send signals to a neighboring post-synaptic cell.

Sarcolemma

The sarcolemma is the specialized plasma membrane surrounding striated muscle fiber cells.