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A Financial Analyst Is Estimating Factor Beta for a Portfolio

Question 18

Multiple Choice

A financial analyst is estimating factor beta for a portfolio.He uses a regression of the historical returns of the security against the historical factor realizations.Which of the following is the factor beta using this regression analysis?


A) The sum of regression intercept and residual
B) The regression intercept
C) The regression residual
D) The slope coefficient in the regression

Correct Answer:

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