Multiple Choice
Which of the following economic factors have been identified to explain security returns according to the APT?
A) Unanticipated changes in industrial production.
B) Unanticipated changes in inflation.
C) Unanticipated changes in interest rates.
D) Unanticipated changes in the shape of the yield curve.
E) All of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q14: Capital market theory makes assumptions about:<br>A) Investor
Q15: The APT model postulates that a security's
Q16: The higher the beta, the higher the
Q17: Beta measures how sensitive the security return
Q18: The slope of the capital market line
Q20: A statistical index of the sensitivity of
Q21: An appealing feature of the APT model
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