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Memphic Memphic
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Posts: 728
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6 years ago
The bi in the regression:
A) measures the sensitivity of the security to market risk.
B) measures the historical performance of the security relative to the expected return predicted by the SML.
C) measures the deviation from the best fitting line and is zero on average.
D) measures the diversifiable risk in returns.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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6 years ago
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