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

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Definitions:

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