Which of the following statements is CORRECT?
A. The CAPM is an ex ante model, which means that all of the variables should be historical values that can reasonably be projected into the future.
B. The beta coefficient used in the SML equation should reflect the expected volatility of a given stock's return versus the return on the market during some future period.
C. The general equation: Y = a + bX + e, is the standard form of a simple linear regression where b = beta, and X equals the independent return on an individual security being compared to Y, the return on the market, which is the dependent variable.
D. The rise-over-run method is not a legitimate method of estimating beta because it measures changes in an individual security's return regressed against time.
E. ?The Security Market Line (SML) shows the relationship between risk as measured by beta and the required rate of return for all securities.
Answer: B
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Answer the following statement true (T) or false (F)
Using the set of symbols commonly used in marketing research to denote experimental designs, which symbol below represents the process of observation or measurement of the dependent variable on the test units or group of units?
A) T B) O C) R D) X
What is accord and satisfaction in contractual terms?
What will be an ideal response?
Epic Systems' code of ethics does NOT include
A. expecting all company personnel to display honesty and integrity in their actions and avoid conflicts of interest. B. barring dealing with suppliers that employ child labor or engage in other unsavory practices. C. committing to a no-layoff policy and to adequate funding of employee retirement programs. D. avoiding use of company assets, resources, and property for personal or other inappropriate purposes. E. prohibiting giving or accepting bribes, kickbacks, or gifts.