Multiple Choice
Assume a one factor model for a security's return is 10% - 1.5 (CPI) . For the year, the CPI's growth rate was 5%, and security's actual return was 8%. The security's unique return was
A) 2.5%.
B) -2.5%.
C) 8%.
D) 5.5%.
Correct Answer:
Verified
Correct Answer:
Verified
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