Consider the One-Factor APT

question 4

Multiple Choice

Consider the one-factor APT. The standard deviation of returns on a well-diversified portfolio is 18%. The standard deviation on the factor portfolio is 16%. The beta of the well-diversified portfolio is approximately

• A) 0.80.
• B) 1.13.
• C) 1.25.
• D) 1.56.

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Definitions:

Financial Resources

Financial resources refer to money or any other assets that can be used to support an organization, individual, or project.

Refractory Period

A phase right after stimulation when a nerve or muscle cannot respond to additional stimulation.

Plateau Phase

A stage in sexual response where arousal is maintained at a high level, often preceding orgasm.

Excitement Phase

The initial stage of the sexual response cycle characterized by increased arousal and preparation for sexual activity.