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    Corporate Finance Study Set 12
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    Exam 12: An Alternative View of Risk and Return: the Arbitrage Pricing Theory
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    The Betas Along with the Factors in the APT Adjust
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The Betas Along with the Factors in the APT Adjust

Question 7

Question 7

Multiple Choice

The betas along with the factors in the APT adjust the expected return for:


A) calculation errors.
B) unsystematic risks.
C) spurious correlations of factors.
D) differences between actual and expected levels of factors.

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