Consider the One-Factor APT

question 65

Multiple Choice

Consider the one-factor APT. The standard deviation of returns on a well-diversified portfolio is 22%. The standard deviation on the factor portfolio is 14%. The beta of the well-diversified portfolio is approximately

• A) 0.80.
• B) 1.13.
• C) 1.25.
• D) 1.57.

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Placenta

A membrane that permits the exchange of nutrients and waste products between the mother and her developing child but does not allow the maternal and fetal bloodstreams to mix.

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An early stage of development in multicellular organisms. In humans, it refers to the stage from the first division of the fertilized egg until it becomes a fetus.

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The developmental stage of a human from the end of the eighth week after conception until birth, characterized by rapid growth and maturation of bodily structures.

Scaffolding

An educational approach that involves providing learners with temporary support in the initial stages of learning a new concept, gradually removing that support as the learner becomes more proficient.