The Equation for the Single-Index Market Model Is

question 125

Multiple Choice

The equation for the single-index market model is

• A) RFR_it = a_i + bR_mt + e_t.
• B) R_it = a_i + bR_mt + e_t.
• C) R_it = a_i + bRFR_t + e_t.
• D) R_mt = a_i + bR_it + e_t.
• E) R_it = a_i + b(R_mt - RFR_t) + e_t.

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Definitions:

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