The Excess Return Form of the Single-Index Market Model Is $\alpha$

question 11

Multiple Choice

The excess return form of the single-index market model is

• A) R_it = \(\alpha\) + b(R_mt - R_it) + e_it.
• B) RFR_t = \(\alpha\) + b(R_mt -RFR_t) + e_it.
• C) R_it -RFR_t = \(\alpha\) + b(R_mt) + e_it.
• D) R_it = \(\alpha\) + b(R_mt - RFR_t) + e_it.
• E) R_it - RFR_t = \(\alpha\) + b(R_mt - RFR_t) + e_it.

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Definitions:

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