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    Exam 10: Arbitrage Pricing Theory and Multifactor Models of Risk and Return
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    In a Multifactor APT Model, the Coefficients on the Macro
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In a Multifactor APT Model, the Coefficients on the Macro

Question 3

Question 3

Multiple Choice

In a multifactor APT model, the coefficients on the macro factors are often called


A) systemic risk.
B) firm-specific risk.
C) idiosyncratic risk.
D) factor betas.

Correct Answer:

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