Using the Index Model, the Alpha of a Share Is

question 5

Multiple Choice

Using the index model, the alpha of a share is 3.0%, the beta if 1.1 and the market return is 10%. What is the residual given an actual return of 15%?

• A)0.0%
• B)1.0%
• C)2.0%
• D)3.0%

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Definitions:

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which aimed to measure the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Maximum Level of Shock

The highest intensity of electric shock that can be safely administered in an experimental or clinical setting.

Ethical Considerations

Factors relating to the determination of what is right or wrong in human conduct, particularly in respect to the well-being of others and the fairness of actions.

Group Unanimity

The condition in which all members of a group fully agree or concur on a decision or opinion, often researched in social psychology.