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.

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Definitions:

Merchandise Inventory

Goods that a company holds with the intent to sell them as part of its primary operations.

Perpetual Inventory System

A method of inventory management where records are updated in real-time with every sale and restocking.

FOB Shipping Point

A term in shipping where the buyer assumes responsibility for the goods and shipping cost as soon as the goods leave the seller’s premises.

Freight Charges

Costs incurred for transporting goods from one place to another by sea, air, or land.