Use the Equation for the Question(s)below

question 17

Multiple Choice

Use the equation for the question(s) below.
Consider the following linear regression model:
(R_i - r_f) = a_i + b_i(R_Mkt - r_f) + e_i
-The b_i in the regression:

• A)measures the sensitivity of the security to market risk.
• B)measures the historical performance of the security relative to the expected return predicted by the SML.
• C)measures the deviation from the best fitting line and is zero on average.
• D)measures the diversifiable risk in returns.

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Definitions:

Confusional Arousal

A sleep disorder characterized by a state of confusion and disorientation upon waking, often with incomplete awakening.

PTSD

Post-Traumatic Stress Disorder, a psychiatric disorder that may occur in people who have experienced or witnessed a traumatic event.

Delayed Sleep Phase Type

A circadian rhythm sleep disorder that causes a person's sleep and wake times to be delayed by two or more hours beyond the conventional or socially acceptable bedtime.

Circadian Rhythm Disorder

A disruption or misalignment in an individual's internal clock, affecting natural cycles of waking and sleeping, and potentially leading to various sleep disorders.