Consider the Multifactor Model APT with Three Factors

question 61

Multiple Choice

Consider the multifactor model APT with three factors. Portfolio A has a beta of 0.8 on factor 1, a beta of 1.1 on factor 2, and a beta of 1.25 on factor 3. The risk premiums on the factor 1, factor 2, and factor 3 are 3%, 5%, and 2%, respectively. The risk-free rate of return is 3%. The expected return on portfolio A is __________ if no arbitrage opportunities exist.

• A) 13.5%
• B) 13.4%
• C) 16.5%
• D) 23.0%

Appreciate the significance of social identity in group behaviour and attitudes.

Explain the mechanisms of collective behaviour and how social protests happen.

Evaluate the evidence supporting realistic conflict theory and its limitations.

Understand the implications of social dilemmas and their impact on the commons.

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Definitions:

Authority

The recognized power or right of an individual or institution to make decisions, command respect, and enforce obedience.

Tasks

Specific activities or assignments that are undertaken to achieve a particular objective.

Yellow Roses

symbolize friendship, joy, and caring, often used to convey warm messages between friends or in professional settings.

Symbol of Love

An object or sign that represents affection and emotional connection between individuals.