Multiple Choice
According to the index model, covariances among security pairs are
A) due to the influence of a single common factor represented by the market index return.
B) extremely difficult to calculate.
C) related to industry-specific events.
D) usually positive.
E) due to the influence of a single common factor represented by the market index return and usually positive.
Correct Answer:

Verified
Correct Answer:
Verified
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