The following plot shows the estimated singleindex model (blue line) from a sample of data points...
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The following plot shows the estimated singleindex model (blue line) from a sample of data points (black dots) of the excess returns on a stock and the market portfolio: 15% 10% Stock Excess Return 15% 70 10% 5% 0% 5% 10% 15% 5% 15% Market Excess Return 10% Which of the following is a correct inference from this plot? The slope of the blue line is the market risk premium The Xintercept of the blue line is the alpha of the stock The stock is moving against the market O The correlation between the stock and the market excess returns is greater than 0 but less than 1 The following plot shows the estimated singleindex model (blue line) from a sample of data points (black dots) of the excess returns on a stock and the market portfolio: 15% 10% Stock Excess Return 15% 70 10% 5% 0% 5% 10% 15% 5% 15% Market Excess Return 10% Which of the following is a correct inference from this plot? The slope of the blue line is the market risk premium The Xintercept of the blue line is the alpha of the stock The stock is moving against the market O The correlation between the stock and the market excess returns is greater than 0 but less than 1
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Related Book For
Fundamentals of Financial Management
ISBN: 9781305635937
Concise 9th Edition
Authors: Eugene F. Brigham
Posted Date:
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