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In the CAPM the Characteristic Line for Stock X Is

Question 87

Multiple Choice

In the CAPM the characteristic line for stock X is:


A) another name for the SML.
B) the regression line relating X's return with the market return from which X's beta is developed.
C) a line between any two data points on a historical plot of X's return against market return.
D) a line of reasoning that characterizes portfolio theory.

Correct Answer:

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