Multifactor Model Scan Better Describe Assets' Returns by

question 18

Multiple Choice

Multifactor model scan better describe assets' returns by

• A)expanding beyond one factor to represent sources of systematic risk.
• B)using variables that are easier to forecast ex ante.
• C)calculating beta coefficients by an alternative method.
• D)using only stocks with relatively stable returns.

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Definitions:

Alfred Binet

A French psychologist who, along with Theodore Simon, developed the first intelligence test, laying the foundation for modern intelligence theory and testing.

School Performance

A measure of how well students achieve or accomplish educational goals and tasks.

Test-Retest Procedures

A method of assessing the reliability of a test by administering the same test to the same subjects at two different points in time and comparing the scores.

Reliability

The consistency and stability of a measurement over multiple occasions or different observers.