Multiple Choice
Risk factors in the APT must possess all of the following the characteristics except:
A) Factors must be readily observable in risk/return space.
B) Each factor must have a pervasive influence on stock returns
C) The factors must influence expected return.
D) Factors must be unpredictable.
Correct Answer:
Verified
Correct Answer:
Verified
Q6: At a given point in time,the SML
Q34: Under the CMT, the relevant risk to
Q45: _,the CML can be downward sloping.<br>A)Ex post<br>B)When
Q46: Under the separation theorem,all investors should:<br>A)hold the
Q47: Like CAPM,APT does not assume a single
Q48: The expected return for the market
Q51: What does it mean when the CAPM
Q52: If markets are truly efficient and in
Q54: If a certain stock has a beta
Q57: How are securities chosen and in what