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

question 50

Multiple Choice

The index model for stock B has been estimated with the following result:R_B = 0.01 + 1.1R_M + e_B.If σ_M = 0.20 and R²_B = 0.50, the standard deviation of the return on stock B is

• A) 0.1111.
• B) 0.2111.
• C) 0.3111.
• D) 0.4111.

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Definitions:

Child Obesity

A medical condition affecting children characterized by an excess amount of body fat, which poses a risk to their health.

Fast Food Restaurants

Eateries that offer quick service and a menu of food items that are prepared and served quickly, often allowing for takeaway or drive-through options.

Genetic Proclivity

An individual's natural predisposition or inclination, influenced by their genetic makeup.

Taller

Having greater height in physical stature compared to average or specific reference points.