In a Multifactor APT Model, the Coefficients on the Macro

question 28

Multiple Choice

In a multifactor APT model, the coefficients on the macro factors are often called

• A) systematic risk.
• B) firm-specific risk.
• C) idiosyncratic risk.
• D) factor betas.

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Definitions:

Global Public Relations

The practice of managing the spread of information between an organization and the public on a global scale.

Socioeconomic

Relating to or concerned with the interaction of social and economic factors.

Halo Effect

The positive bias shown by customers toward certain products because of a favorable experience with other products made by the same manufacturer.

Favorable Experience

A positive and satisfying interaction or encounter with a product, service, or organization that meets or exceeds expectations.