Multiple Choice
A factor is a variable that:
A) affects the returns of risky assets in a systematic fashion.
B) affects the returns of risky assets in an unsystematic fashion.
C) correlates with risky asset returns in a unsystematic fashion.
D) does not correlate with the returns of risky assets in an systematic fashion.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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