Which Pricing Model Provides No Guidance Concerning the Determination of the Risk

question 37

Multiple Choice

Which pricing model provides no guidance concerning the determination of the risk premium on factor portfolios?

• A)The CAPM
• B)The multifactor APT
• C)Both the CAPM and the multifactor APT
• D)Neither the CAPM nor the multifactor APT

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Definitions:

Extraversion

A personality trait characterized by energy gain from external social interactions and activities, opposite of introversion.

Outgoing

Characterized by an extroverted, socially confident, and friendly behavior.

Assertive

Referring to the quality of being self-assured and confident without being aggressive, enabling clear and respectful communication of one's needs and desires.

Extraverted

Exhibiting an outgoing, socially confident personality and engaging with the external world.