In the Single-Index Model Represented by the Equation R_i= E(r_i) $\beta$

Multiple Choice

In the single-index model represented by the equation r_i= E(r_i) + $\beta$ _iF + e_i, the term e_i represents

A) the impact of unanticipated macroeconomic events on security i's return.
B) the impact of unanticipated firm-specific events on security i's return.
C) the impact of anticipated macroeconomic events on security i's return.
D) the impact of anticipated firm-specific events on security i's return.