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    Exam 11: Factor Models and the Arbitrage Pricing Theory
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    If the Expected Rate of Inflation Was 3% and the Actual
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If the Expected Rate of Inflation Was 3% and the Actual

Question 22

Question 22

Multiple Choice

If the expected rate of inflation was 3% and the actual rate was 6.2%; the systematic response coefficient from inflation,bI ,would result in a change in any security return of ___ bI .


A) 9.2
B) 3.2
C) -3.2
D) 3.0
E) 6.2

Correct Answer:

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