If One Accepts the Sharpe Single-Index Model,and the Simple Form $\alpha _ { i }$

question 39

Essay

If one accepts the Sharpe single-index model,and the simple form of the CAPM holds,what is $\alpha _ { i }$ (the intercept term in the Sharpe single-index model)equal to?

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Definitions:

Recessive Allele

The allele that is not expressed when an individual possesses two different alleles for the same trait.

Carriers

Individuals who are heterozygous for a trait with a dominant and recessive allele and thus express only the characteristics associated with the dominant allele but may pass the recessive allele, including one for a recessive disorder, on to their offspring.

Different Alleles

Variants of the same gene that exist at the same locus on a chromosome but encode for different traits.

Intermediate

A level of proficiency that falls between beginner and advanced, often indicating a moderate grasp of skills or knowledge.