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The Index Model Has Been Estimated for Stock a with the Following

Question 5

Multiple Choice

The index model has been estimated for stock A with the following results: RA = 0.01 + 0.8RM + eA.
ΣM = 0.20; σ(eA) = 0.10.
The standard deviation of the return for stock A is


A) 0.0356.
B) 0.1887.
C) 0.1600.
D) 0.6400.

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