Question: A single factor model states that a. Return of a security should be independent from the security-specific risk b. A security return is linearly affected

A single factor model states that
a. Return of a security should be independent from the security-specific risk
b. A security return is linearly affected by nonsystematic risk and one source of systematic risk
c.all choices above
d. a and b
e. Securitys alpha should be zero

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