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The Equation for the Single-Index Market Model Is

Question 125

Multiple Choice

The equation for the single-index market model is


A) RFRit = ai + bRmt + et.
B) Rit = ai + bRmt + et.
C) Rit = ai + bRFRt + et.
D) Rmt = ai + bRit + et.
E) Rit = ai + b(Rmt - RFRt) + et.

Correct Answer:

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