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Question(s) / Instruction(s):

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.

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