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A risk manager performs an ordinary least squares (OLS) regression to estimate the sensitivity of a stock's return to the return on the S&P 500. This OLS procedure is designed to:
A
Minimize the square of the sum of differences between the actual and estimated S&P 500 returns.
B
Minimize the square of the sum of differences between the actual and estimated stock returns.
C
Minimize the sum of differences between the actual and estimated squared S&P 500 returns.
D
Minimize the sum of squared differences between the actual and estimated stock returns.
