Multiple Choice
The term Corr(å R, ε T) = 0 tells us that:
A) the 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 zero.
D) the systematic risk companies R and T is unrelated.
Correct Answer:
Verified
Correct Answer:
Verified
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