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Regressing returns for Stock A against returns for the market portfolio yielded the following results: Stock A's alpha is 2%. Stock A's beta is 2,
Regressing returns for Stock A against returns for the market portfolio yielded the following results: Stock A's alpha is 2%. Stock A's beta is 2, and the standard deviation of Stock A's returns is 40%. The standard deviation of the market's returns is 10%. A. Where does Stock A's characteristic line intercept the vertical axis? B. What is the slope of Stock A's characteristic line? C. What is the systematic risk of Stock A? D. What is the unique risk of Stock A
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