Question
Choose a false statement and give explanation. Betas represent securitys responsiveness to market in index model Index model relates stock returns to returns on firm
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Choose a false statement and give explanation.
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Betas represent securitys responsiveness to market in index model
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Index model relates stock returns to returns on firm specific factors.
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SCL is a plot of securitys predicted excess return from excess return of market.
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Firm-specific risk is the component of return variance independent of market factor
Choose a false statement and give explanation.
-
Betas represent securitys responsiveness to market in index model
-
Index model relates stock returns to returns on firm specific factors.
-
SCL is a plot of securitys predicted excess return from excess return of market.
-
Firm-specific risk is the component of return variance independent of market factor
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
