Question
What is the Single Index Model equation? 1) How is it different from the CAPM equation? 2) What is one fundamental consequence of expressing returns
What is the Single Index Model equation? 1) How is it different from the CAPM equation? 2) What is one fundamental consequence of expressing returns with SIM rather than CAPM? 3) What are the sources of return in SIM? 4) Why was SIM developed in response to CAPM?
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Step: 1
Single Index Model SIM Equation Rit i iRmt Rf it Where Rit Return of asset i in period t i Alpha of ...
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Personal Finance An Integrated Planning Approach
Authors: Ralph R Frasca
8th edition
136063039, 978-0136063032
