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Briefly describe the regression equation, the expected return-beta relationship, and the risk and covariance in the context of the Single Index Model. With the Single
Briefly describe the regression equation, the expected return-beta relationship, and the risk and covariance in the context of the Single Index Model. With the Single Index Model, please explain the costs of the simplification. Finally, explain briefly the diversification argument that is neatly highlighted by the Single Index Model.
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