Question: Assame that security returns are generated by the single - index model. R i = i i R M e i where R i is

Assame that security returns are generated by the single-index model.
Ri=iiRMei
where Ri is the excess return for security i and RM is the market's excess return. The risk-free rate is 2%. Suppose also that there are three securities,A,B, and C, characterized by the following data:
\table[[Security,,E[R],o[e]],[A,0.8,10%,25%
Assame that security returns are generated by the

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