Question: A single factor model states that a. A security return is linearly affected by nonsystematic risk and one source of systematic risk b. Return of

A single factor model states that

a. A security return is linearly affected by nonsystematic risk and one source of systematic risk

b. Return of a security should be independent from the security-specific risk

c. all choices above

d. a and b

e. Security's alpha should be zero

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