A Factor in APT Is a Variable That

question 89

Multiple Choice

A factor in APT is a variable that

• A)is pure "noise."
• B)correlates with risky asset returns in an unsystematic manner.
• C)correlates with the returns of risky assets in a systematic manner.
• D)affects the returns of risky assets in a random manner.

---

Definitions:

Double-Loop Learning

A process where individuals or organizations question and modify their goals, strategies, and assumptions within a learning cycle.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires, which is crucial for personal development.

Charismatic

Being charismatic involves possessing a compelling charm or appeal that inspires devotion or enthusiasm in others.

New Leader

A new leader refers to someone who has recently assumed a leadership role, often facing the challenge of establishing credibility and guiding their team or organization toward goals.