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Given the Characteristic line of firm A with an alpha of -0.2% and a beta...

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Finance

Given the Characteristic line of firm A with an alpha of -0.2% and a beta of 2, which one of the following statements is the most correct?

Group of answer choices

firm A's alpha is negative, implying that the firm is overpriced according to the single factor model.

Firm A negatively comoves with the market or runs again the market.

None of the above.

Firm A has a very low market risk.

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