Solved

The Term Corr ε\varepsilon R ε\varepsilon T )= 0 Tells Us That:
A)all Error Terms of Tells

Question 32

Multiple Choice

The term Corr( ε\varepsilon R , ε\varepsilon T ) = 0 tells us that:


A) all error terms of company R and T are 0.
B) the unsystematic risk of companies R and T is unrelated or uncorrelated.
C) the correlation between the returns of companies R and T is -1.
D) the systematic risk companies R and T is unrelated.
E) None of the above.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions