The factor F in the APT model represents
A) firm-specific risk.
B) the sensitivity of the firm to that factor.
C) a factor that affects all security returns.
D) the deviation from its expected value of a factor that affects all security returns.
Correct Answer:
Verified
Q21: The feature of the APT that offers
Q23: The APT requires a benchmark portfolio
A)that is
Q25: Consider the multifactor APT.There are two independent
Q25: Which of the following factors might affect
Q28: Consider the multifactor APT.There are two independent
Q28: An investor will take as large a
Q29: Consider the single factor APT.Portfolios A and
Q30: A professional who searches for mispriced securities
Q34: A well-diversified portfolio is defined as
A) one
Q40: The APT differs from the CAPM because
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