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2 points Sam marks the single-index model is estimated to analyse the risk of two shares A and B which of the following statement is

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2 points Sam marks the single-index model is estimated to analyse the risk of two shares A and B which of the following statement is correct? Assume that the beta is positive for both A and B Suppose that the market index rick and the firm specific factors are not correlated, and the firm specific factors of A and B are uncorrelated if the beta of A and B are correctly estimated, the covariance of the pair A and is always over-estimated if the market index risk is over-estimated if the beta of A is correctly estimated, the estimated systematic risk of A is always over estimated if the market-index risk is over-estimated If the beta of A is correctly estimated, the estimated total risk of A is always underestimated if the beta of 1 is underestimated Suppose that the market index risk and the firm specific factors are not correlated, and the firm specific factors of A and B are uncorrelated if the beta of A and are both over-estimated, then the coverance of the pair A and it is always over estimated if the market-index risk is underestimated the beta of A and B are correctly estimated the covartance of the pair A and B is always correctly estimated 2 points Sam marks the single-index model is estimated to analyse the risk of two shares A and B which of the following statement is correct? Assume that the beta is positive for both A and B Suppose that the market index rick and the firm specific factors are not correlated, and the firm specific factors of A and B are uncorrelated if the beta of A and B are correctly estimated, the covariance of the pair A and is always over-estimated if the market index risk is over-estimated if the beta of A is correctly estimated, the estimated systematic risk of A is always over estimated if the market-index risk is over-estimated If the beta of A is correctly estimated, the estimated total risk of A is always underestimated if the beta of 1 is underestimated Suppose that the market index risk and the firm specific factors are not correlated, and the firm specific factors of A and B are uncorrelated if the beta of A and are both over-estimated, then the coverance of the pair A and it is always over estimated if the market-index risk is underestimated the beta of A and B are correctly estimated the covartance of the pair A and B is always correctly estimated

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