Multiple Choice
The intercept in the regression equations calculated by beta books is equal to
A) α in the CAPM.
B) α + rf(1 + β) .
C) α + rf(1 − β) .
D) 1 − α.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q68: Suppose the following equation best describes the
Q69: The idea that there is a limit
Q70: Assume that stock market returns do not
Q71: The index model has been estimated for
Q72: Suppose you held a well-diversified portfolio with
Q74: According to the index model, covariances among
Q75: Rosenberg and Guy found that _ helped
Q76: The index model for stock A has
Q77: If the index model is valid, _
Q78: VM Inc. has an estimated beta of