In a Factor Model, the Return on a Stock in a Particular

question 56

Multiple Choice

In a factor model, the return on a stock in a particular period will be related to

• A)firm-specific events.
• B)macroeconomic events.
• C)the error term.
• D)both firm-specific events and macroeconomic events.

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Definitions:

Poorer People

Individuals or groups who have significantly less financial resources or access to wealth compared to others within a society.

Commonalities

Shared features, characteristics, or properties among different entities, ideas, or groups.

African

Pertaining to the continent of Africa, its peoples, cultures, or languages.

Eastern

Relating to or characteristic of the eastern part of the world, often specifically Asia or the Eastern cultures and philosophies.