According to the index model,covariances among security pairs are
A)due to the influence of a single common factor represented by the market index return
B)extremely difficult to calculate
C)related to industry-specific events
D)usually positive
E)A and D

Question

Quizplus · Accepted Answer

The Answer of According to the index model,covariances among security pairs are
A)due to the influence of a single common factor represented by the market index return
B)extremely difficult to calculate
C)related to industry-specific events
D)usually positive
E)A and D

According to the Index Model,covariances Among Security Pairs Are