In a Multifactor APT Model, the Coefficients on the Macro

question 37

Multiple Choice

In a multifactor APT model, the coefficients on the macro factors are often called

• A) systematic risk.
• B) factor sensitivities.
• C) idiosyncratic risk.
• D) factor betas.
• E) factor sensitivities and factor betas.

---

Definitions:

Stock Dividends Distributable

Shares that have been declared as a dividend but have not yet been distributed to shareholders.

Corporate Form

A legal structure for organizing a business as a separate entity from its owners, providing limited liability and other legal benefits.

Shareholder's Liability

The financial responsibility of the shareholders of a company is typically limited to their investment in the company's shares.

Retained Earnings

Retained Earnings represent the cumulative amount of net income a company retains, rather than distributing to shareholders as dividends.