Question: QUESTION 1 The beta coefficient in a simple linear regression model measures the sensitivity of the independent variable (x) to changes in the dependent variable
QUESTION 1
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The beta coefficient in a simple linear regression model measures the sensitivity of the independent variable (x) to changes in the dependent variable (y):
True
False
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According to the Capital Asset Pricing Model (CAPM) investors should only be rewarded for taking systematic risk, and not for asset-specific risk (unsystematic risk) which can be diversified away:
True
False
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