You are considering the two securities shown below. Which of the following statements is uniquely different about Security 4 relative to Security 2? R4 xf RM R₂ Only Security 4 has a positive estimated beta. Security 4 has a higher beta than Security 2. Security 4 has a higher R2 than Security 2. Only Security 4 has a positive estimated alpha. RM

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.EA: Extended Application Medical Diagnosis
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You are considering the two securities shown below. Which of the following statements is uniquely different
about Security 4 relative to Security 2?
R4
R2
f 44
RM
RM
Only Security 4 has a positive estimated beta.
Security 4 has a higher beta than Security 2.
Security 4 has a higher R² than Security 2.
O Only Security 4 has a positive estimated alpha.
Transcribed Image Text:You are considering the two securities shown below. Which of the following statements is uniquely different about Security 4 relative to Security 2? R4 R2 f 44 RM RM Only Security 4 has a positive estimated beta. Security 4 has a higher beta than Security 2. Security 4 has a higher R² than Security 2. O Only Security 4 has a positive estimated alpha.
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