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:

Organizational Events

Occurrences within an organization that have the potential to affect its operations, culture, or stakeholders, ranging from internal meetings to external changes in the business environment.

OB

Organizational Behavior; the study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself.

Organizational Behavior

A field of study that investigates the impact that individuals, groups, and structures have on behavior within organizations, aiming to improve organizational effectiveness.

Telecommuting

The practice of working from a remote location, often home, instead of commuting to an office, utilizing digital communication tools.