Which of the following statements is CORRECT? A. The distance of the plot points from...

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Finance

Which of the following statements is CORRECT? A. The distance of the plot points from the characteristic line is a measure of the stocks diversifiable risk. B. The distance of the plot points from the characteristic line is a measure of the stocks market risk. C. The slope of the characteristic line is the stocks standard deviation. D. The characteristic line is the regression line that results from plotting the returns on a particular stock versus the returns on a stock from a different industry. E. Characteristic line is another name for the Security Market Line.

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