If the index model is valid, _________ would be helpful in determining the covariance between assets HPQ and KMP. A)$\beta$_HPQ B)$\beta$_KMP C)$\sigma$_M D)all of the options

Question

Quizplus · Accepted Answer

All the options provided, despite the apparent formatting or typographical errors, suggest variables or factors that could be involved in calculating the covariance between assets in the context of the index model. The index model typically involves beta coefficients (which measure an asset's sensitivity to movements in the market or a specific index), variances, and possibly specific risk factors unique to each asset. Therefore, all options could be relevant in determining the covariance between assets HPQ and KMP under the index model framework.

If the Index Model Is Valid, _________ Would Be Helpful β\betaβ

If the Index Model Is Valid, _________ Would Be Helpful $\beta$