Question: Index model regression estimates 1 % + 1 . 2 ( rM rf ) 2 % + 0 . 8 ( rM rf ) R

Index model regression estimates1%+1.2(rM rf)2%+0.8(rM rf)R-square0.6650.481Residual standard deviation, (e)11.8%20.6%Standard deviation of excess returns23.1%27.9%

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