Multiple Choice
An appealing feature of the APT model is that:
A) It makes fewer assumptions about investor behavior and the market structure.
B) Is simple to use.
C) Is easier to implement.
D) Is more accurate in estimating the expected rate of return of an asset.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: The higher the beta, the higher the
Q17: Beta measures how sensitive the security return
Q18: The slope of the capital market line
Q19: Which of the following economic factors have
Q20: A statistical index of the sensitivity of
Q22: Assumptions about capital markets include:<br>A) Perfectly competitive
Q23: Since diversification reduces unsystematic risk, the relevant
Q24: In estimating beta, practical problems arise, which
Q25: Capital market theory assumes that:<br>A) Investors have
Q26: Asset pricing models are equilibrium models.