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explain why? Suppose one uses the single-index model to estimate characteristics of securities. Which of the following statements is correct? The covariances between securities are

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explain why?

Suppose one uses the single-index model to estimate characteristics of securities. Which of the following statements is correct? The covariances between securities are the same as in the data. The variance of a portfolio is the same as in the data The expected return and the variance of a security are the same as in the data. The expected return, variance and covariances of a security are the same as in the data

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