The index model is estimated by applying regression analysis to excess rates of return. The slope of

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The index model is estimated by applying regression analysis to excess rates of return. The slope of the regression curve is the beta of an asset, whereas the intercept is the asset’s alpha during the sample period. The regression line is also called the security characteristic line. P-968

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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