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:

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, acting as a cushion and providing basic mechanical and immunological protection to the brain.

Choroid Plexus

A network of cells in the ventricles of the brain that produce cerebrospinal fluid.

Ventricle

A chamber of the heart or brain that receives or pumps out blood or cerebrospinal fluid, respectively.

Arbor Vitae

Refers to the treelike appearance of the cerebellar white matter when viewed in cross section, important for the coordination of muscle movements.