In the Single-Index Model Represented by the Equation R_i =

Multiple Choice

In the single-index model represented by the equation r_i = E(r_i) + β_iF + e_i, the term e_i represents

A) the impact of unanticipated macroeconomic events on security i's return.
B) the impact of unanticipated firm-specific events on security i's return.
C) the impact of anticipated macroeconomic events on security i's return.
D) the impact of anticipated firm-specific events on security i's return.
E) the impact of changes in the market on security i's return.