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Consider the linear regression model for the returns of stock A and the returns of...

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Consider the linear regression model for the returns of stock A and the returns of stock B. Stock A is 50% more volatile than stock B. Which of the following statements is TRUE?

A.

The stocks must be positively correlated ( )

B.

Beta must be positive ( )

C.

Beta must be greater in absolute value than the correlation of the stocks ( )

D.

Alpha must be positive ( )

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A simple linear regression is based on 100 data points.
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