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The Index Model Has Been Estimated for Stock a with the Following

Question 17

Multiple Choice

The index model has been estimated for stock A with the following results:
RA= 0.01 + 0.8RM+ eA
ΒM= 0.20 β(eA) = 0.10
The standard deviation of the return for stock A is __________.


A) 0.0356
B) 0.1886
C) 0.1600
D) 0.6400
E) none of the above

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