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The Excess Return Form of the Single-Index Market Model Is

Question 30

Multiple Choice

The excess return form of the single-index market model is


A) Rit =α + b(Rmt - Rit) + eit
B) RFRt = α + b(Rmt - RFRt) + eit
C) Rit - RFRt = α + b(Rmt) + eit
D) Rit = α + b(Rmt - RFRt) + eit
E) Rit - RFRt = α + b(Rmt - RFRt) + eit

Correct Answer:

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