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The APT Requires a Benchmark Portfolio

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The APT requires a benchmark portfolio


Definitions:

Bimodal

A set of data that has two modes.

Standard Deviation

A statistical measure of the dispersion or variability of a data set around its mean.

Frequency Distribution

A statistical representation showing the number of instances in which a variable takes each of its possible values.

Linear Regression Line

A line that approximates the points on a scatterplot which can be used to show a trend and make predictions; also called a line of best fit or least squares line.

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