4. Which of the following statements is correct?
a. The characteristics 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.
b. The distance of the plot points from the characteristics line is a measure of the stock's discounted value risk.
c. "Characteristics line" is another name for the Security Market Line.
d. The distance of the plot points from the characteristics line is a measure of the stock's market risk.
e. The slope of the characteristic line is the stock's standard deviation.© BrainMass Inc. brainmass.com June 4, 2020, 12:23 am ad1c9bdddf
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The expert examines characteristics lines for regression.